HKVAEX Withdraws License Application; CommEx Announces Shutdown
Summary:
HKVAEX, a cryptocurrency exchange linked to Binance, has retracted its license application to the Hong Kong Securities and Futures Commission (SFC). Following this withdrawal, HKVAEX must cease Hong Kong operations by May 31. Three other digital-asset trading platforms, including Huobi, have also withdrawn their operational license applications. CommEx, a Russian crypto exchange tied to Binance, has announced the cessation of operations.
HKVAEX, a cryptocurrency exchange reportedly linked to Binance and based in Hong Kong, has retracted its license application from the Hong Kong Securities and Futures Commission (SFC) as of March 28. The SFC had set a February 29th deadline for all cryptocurrency platforms to submit an application for a license to operate in the region. HKVAEX, which Chinese state media SCMP claims has shared technical and other resources with Binance, made its application for the Hong Kong license on January 4. The SFC has confirmed on its website that HKVAEX rescinded its license application almost three months after its submission. Now, HKVAEX must cease operations in Hong Kong by May 31 following its application withdrawal. Binance has not answered Cointelegraph’s inquiries concerning its alleged association with HKVAEX or why the exchange decided to withdraw its application in Hong Kong. There have been three other digital-asset trading platforms, including the well-known international crypto exchange Huobi, that have also withdrawn their requests for operational licenses in 2024 for undisclosed reasons. A member of the X community, Wu Blockchain, has suggested that the withdrawal could be due to a variety of factors, such as a requirement to switch their auditing company or provide additional information. At the time of its creation, HKVAEX was mistakenly identified as VAEX, a separate Hong Kong cryptocurrency exchange linked to KuCoin. At the time, an HKVAEX spokesperson clarified to Cointelegraph that “VAEXC is another applicant, and they are not affiliated with us in any way.” In related news, CommEx, a Russian cryptocurrency exchange with strong ties to Binance, announced that it would be ceasing operations and had already stopped accepting deposits as of March 25. “We regret to inform you of the impending cessation of operations on the CommEX platform,” the company stated, and advised its users to transfer their assets to other wallets. Previously, in early September 2023, Binance had suggested leaving Russia as leading local executives, such as the Vice President of Eastern Europe Gleb Kostarev, resigned. CommEx later clarified that it operated without any influence from Binance, but accepted that some of its core members were former Binance employees.
Published At
3/29/2024 11:12:17 AM
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