HKVAEX, Associated with Binance, Withdraws License Request from Hong Kong’s Securities and Futures Commission

The crypto exchange HKVAEX, associated with the largest crypto exchange globally, Binance, has retracted its application for a virtual asset trading platform license from the Hong Kong Securities and Futures Commission (SFC) after the deadline.

The Hong Kong securities authority requested that crypto exchanges and companies submit their license applications prior to the cutoff date of February 29.

HKVAEX Withdraws Application for Virtual Asset Trading Platform License in Hong Kong

The Virtual Asset Trading Platform (VATP) license is issued by the Hong Kong government, permitting crypto exchanges to function within the region.

Despite the license being available for several years, only two exchanges—HashKey and OSL—currently hold one. HashKey received its approval in November 2022, followed by its competitor in December 2022. Several applicants, including HKVAEX, which is connected to Binance, have been on the waiting list until yesterday, when the firm decided to withdraw its application.

Source: sfc.hk

HKVAEX, which reportedly shares technical and other resources with Binance, as per Chinese state media SCMP, filed its application on January 4. However, the exchange seems to be absent from the list of companies whose license applications are featured on the Hong Kong SFC website, confirming that HKVAEX withdrew its application nearly three months after submission.

It is noteworthy that the SFC publicly maintains a list of crypto platforms that will be granted operational licenses to enhance public awareness regarding safe crypto trading.

The reasons for the withdrawal remain ambiguous. Some speculate it could be related to a request for a change in the auditing firm, inadequate documentation, or other factors.

The Hong Kong SFC mandates that crypto trading platforms submit applications for regional operational licenses by February 29, also establishing a May 31 deadline for non-compliant exchanges to halt operations. As a result, HKVAEX must cease its operations in Hong Kong by May 31.

In addition to HKVAEX, three other virtual asset trading platforms also withdrew their license applications in 2024, although the reasons for these withdrawals have not been disclosed. This includes Huobi, a notable global crypto exchange.

HTX (Formerly Huobi) Resubmits License Application in Hong Kong After Initial Withdrawal

In February, HTX, previously known as Huobi, withdrew its license application in Hong Kong and subsequently resubmitted it. HTX initially filed the exchange license application in early February, only to retract it three days later on February 23, referencing the Securities and Futures Commission’s list of license applicants. However, the company resubmitted the application on February 27, according to the SFC’s website.

In contrast to the broader crackdown on crypto trading and mining in mainland China, Hong Kong has welcomed crypto firms since last year. In June 2023, Hong Kong officially launched its crypto licensing framework for virtual asset trading platforms, allowing licensed exchanges to provide retail trading services. Numerous global exchanges have sought retail trading licenses.

As per its website, the financial regulator is currently reviewing applications from 19 crypto firms, including OKX, Bybit, Bullish, and Crypto.com. The SFC has encouraged investors to verify trading platforms through its public register of licensed persons and registered institutions, as well as the list of licensed virtual asset trading platforms for pertinent information on licensed entities, including their official websites.

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