As a long-term crypto investor with experience in the Hong Kong market, I find the recent developments surrounding HKVAEX and Binance concerning. The sudden cease in operations of HKVAEX, which was linked to Binance, comes at an unfortunate time as the city sees the launch of spot Bitcoin and Ether ETFs.
The crypto exchange HKVAEX linked to the world’s largest crypto exchange Binance to now fully ceased operations in Hong Kong, as reported earlier by CoinGape. HKVAEX recently revealed a statement to cease withdrawals from the crypto exchange on April 30, shutting down all operations starting May 1.
The halt in operations overlaps with the debut of Bitcoin and Ether spot ETFs in Hong Kong. Despite the buzz, these ETFs recorded a modest trading volume of $12 million on their first day. According to Bloomberg senior ETF analyst Eric Balchunas, this volume is noteworthy given the market conditions. He further refuted criticisms regarding the alleged “poor performance” of these funds.
Binance’s HKVAEX Withdraws License Application in Hong Kong
The cryptocurrency exchange linked to Binance, HKVAEX or BX Services Ltd, has recently taken back its application for a virtual asset trading platform license with the Securities and Futures Commission (SFC) in Hong Kong. Consequently, the firm is now included in the SFC’s list of companies whose applications have been rejected, declined, or withdrawn.
The Hong Kong securities regulatory authority previously requested that cryptocurrency exchanges and businesses submit their license applications by the cut-off date of February 29th.
HKVAEX relinquished its license on March 28, leaving the rationale behind this decision unexplained. Speculation suggests possible reasons such as a request to switch audit firms, insufficient documentation, or other motivations. The application for this license was submitted on January 4. Walton Chan, HKVAEX’s head of operations, declared the shutdown and advised users to withdraw their assets by April 30.
SFC Tensions With CZ and Hong Kong Disappointing ETF Debut
Elizabeth Wong, the Licensing Head at the Securities and Futures Commission (SFC), expressed concerns about Binance’s prospects for obtaining a license in Hong Kong following Changpeng “CZ” Zhao’s plea deal regarding US anti-money-laundering laws. The regulatory body appeared hesitant towards Binance’s licensing application.
Today is the day for the Czech Republic’s sentencing hearing in court regarding allegations of breaking anti-money laundering regulations. The prosecution has proposed a three-year prison term, while the defense requests probation, akin to what was granted to BitMEX executives.
In Hong Kong, the accumulated trading value for its crypto ETFs amounted to a significant $12.4 million. Due to this comparatively small figure, traders swiftly initiated short positions on Bitcoin, resulting in a decrease of its price below the $61,000 mark today.
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2024-04-30 18:14