Hong Kong-based HashKey to cease Binance-related transactions amid policy change Hong Kong-based HashKey to cease Binance-related transactions amid policy change
This decision is coming four months after HashKey restricted large deposits from third-party exchanges except from Binance
2 min read
Updated: Apr. 19, 2024 at 10:29 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
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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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Hashkey Capital
HashKey Capital is an institutional asset manager investing solely in blockchain technology and digital assets.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.