Binance-Linked Crypto Exchange HKVAEX Abruptly Closes, Leaving Users Astonished

Hong Kong’s cryptocurrency exchange, HKVAEX, which is suspected of being linked to Binance, has unexpectedly shut down, causing shockwaves in the digital currency community. The exchange has urged all users to withdraw their assets before April 30 as it permanently closes its doors. The reasons for the closure are unclear, but regulatory pressure may be a contributing factor.

HKVAEX had previously submitted a license application to the Hong Kong Securities and Futures Commission (SFC) on January 4, 2024. However, it withdrew the application on March 28, leading to speculation about its future. Journalist Colin Wu suggests that demands for changes in the audit process or incomplete application materials could be potential reasons for the withdrawal.

The closure of HKVAEX comes as the SFC set a deadline of February 29 for all crypto exchanges to apply for licenses in Hong Kong. HKVAEX, reportedly associated with Binance, initially applied on January 4.

The closure will occur in phases, with immediate suspension of new user registrations and virtual asset deposit services. Trading services will be terminated on April 5, 2024, and the official HKVAEX website will be delisted on May 1, 2024. Users can seek support for asset withdrawals or other issues after delisting by contacting the support team via email. HKVAEX emphasizes the importance of timely asset retrieval for a smooth closure.

The closure of HKVAEX has raised concerns about its connection to Binance and the reasons behind its sudden shutdown. Reports had suggested that Binance supported HKVAEX’s license application, but a Binance representative clarified that there is no affiliation between the two. Other major applicants are also withdrawing their license applications, with OSL and HashKey currently being the only platforms approved for licenses by the SFC.