HashKey, a crypto exchange based in Hong Kong, recently announced that it would be discontinuing support for transactions related to Binance starting next month. The decision includes restricting deposits from Binance as of May 10 and ending support for virtual asset withdrawals to Binance-hosted wallet addresses by May 17. While transactions involving virtual assets to whitelisted unhosted wallet addresses will not be affected, the exchange did not provide specific details about the policy change.
The rationale behind HashKey’s decision to cease Binance-related transactions was attributed to “a change in its policy.” This abrupt shift in support comes after the exchange terminated support for crypto deposits from all third-party exchanges except Binance back in December 2023. During that time, HashKey imposed restrictions on deposits from Binance, requiring transactions to exceed 8,000 HKD and adhere to specific guidelines.
The termination of support for Binance-related transactions by HashKey adds to the growing challenges faced by Binance across different legal jurisdictions. Recent events, such as the closure of HKVAEX, a crypto trading platform in Hong Kong linked to Richard Teng, and the detention of two executives by Nigerian authorities, have further intensified regulatory scrutiny on Binance. Despite these setbacks, Binance has been making efforts to enhance its compliance and regulatory efforts, especially in regions like India and Dubai.
On a positive note, HashKey has been making significant advancements in its operations over the past month. HashKey Capital, a subsidiary, recently received regulatory approval from the Hong Kong Securities and Futures Commission (SFC) to co-launch a spot Bitcoin exchange-traded fund (ETF) with Bosera International. Additionally, the exchange unveiled a global crypto trading platform that obtained licensing in Bermuda to offer digital asset trading services in multiple countries, excluding China and the United States.
HashKey’s decision to end support for Binance transactions marks a significant shift in its policy and may have broader implications for the crypto trading landscape. While Binance faces mounting legal challenges, HashKey’s regulatory approvals and new offerings signal its commitment to compliance and growth in the industry. The evolving relationship between exchanges and regulatory bodies highlights the importance of adapting to changing guidelines and maintaining transparency in the crypto market.
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