Hong Kong-based HashKey to cease Binance-related transactions amid policy change

Crypto exchange HashKey said it would end support for Binance-related transactions next month.

In an April 19 statement, the Hong Kong-based crypto trading platform stated that it would restrict deposits from Binance starting May 10 and end support for virtual asset withdrawals to Binance-hosted wallet addresses by May 17.

However, transactions involving virtual assets to whitelisted unhosted wallet addresses will remain unaffected. These addresses are verified and authenticated by the exchange.

HashKey attributed its decision to “a change in its policy” but did not provide additional details about the new rules.

In December 2023, HashKey terminated support for crypto deposits from all third-party exchanges except Binance. At the time, the exchange announced it would only accept deposits exceeding 8,000 HKD from Binance, subject to specific guidelines.

HashKey Exchange is one of the few licensed exchanges in Hong Kong and caters to both institutional and retail investors.

Binance regulatory woes

HashKey’s decision further compounds Binance’s woes across various legal jurisdictions.

Last month, an entity linked to the Richard Teng-crypto trading platform in Hong Kong, HKVAEX, abruptly closed operations and withdrew its application for licensing.

Amid the drama, the Nigerian authorities detained two executives from the platform and accused the exchange of exacerbating its foreign exchange challenges.

However, Binance has recently adopted a compliance-first approach and made significant strides in its regulatory push, particularly in India and Dubai.

HashKey’s advancements

Over the past month, HashKey has made notable advancements in its operations.

On April 15, HashKey Capital said it received regulatory clearance to co-launch a spot Bitcoin exchange-traded fund (ETF) with Bosera International.

A spokesperson for the platform told CryptoSlate that the Hong Kong Securities and Futures Commission (SFC) approved upgrading its existing License 9 to enable it to offer virtual asset fund product services to retail investors.

Before that, the firm had unveiled a global crypto trading platform that received licensing in Bermuda to provide digital asset trading services. This platform will operate in numerous countries, excluding China and the United States.

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