Crypto exchange HashKey recently declared that it would no longer support transactions related to Binance in the upcoming month. This decision includes restrictions on deposits from Binance starting on May 10 and a complete halt to virtual asset withdrawals to Binance-hosted wallet addresses by May 17.
Although HashKey attributed this move to “a change in its policy,” the exchange did not offer any further details regarding the specifics of these new rules. It is interesting to note that back in December 2023, HashKey stopped supporting crypto deposits from all third-party exchanges, with Binance being the only exception. At that time, they informed users that only deposits exceeding 8,000 HKD from Binance would be accepted, subject to specific guidelines.
Impact on HashKey Exchange
As one of the few licensed exchanges in Hong Kong catering to both institutional and retail investors, HashKey’s decision to sever ties with Binance may have significant repercussions. This move comes amidst mounting legal challenges faced by Binance in various jurisdictions. For instance, HKVAEX, an entity linked to Richard Teng’s crypto trading platform in Hong Kong, recently shut down operations and withdrew its licensing application.
Despite these setbacks, Binance has been actively working towards compliance in different regions. The exchange has taken significant steps in its regulatory initiatives, especially in countries like India and Dubai. By adopting a compliance-first approach, Binance hopes to address concerns raised by authorities and improve its standing in the global cryptocurrency market.
Recent Developments at HashKey
While HashKey’s decision to cut ties with Binance may raise eyebrows, the exchange has also been making strides in its operations. Just last month, on April 15, HashKey Capital announced receiving regulatory clearance to co-launch a spot Bitcoin exchange-traded fund (ETF) with Bosera International. This approval from the Hong Kong Securities and Futures Commission (SFC) enables HashKey to provide virtual asset fund products to retail investors.
Additionally, HashKey unveiled a global crypto trading platform that obtained licensing in Bermuda to offer digital asset trading services. It’s worth noting that this platform will operate in multiple countries, with the exception of China and the United States. These recent advancements signify HashKey’s commitment to expanding its services and complying with regulatory requirements in the evolving cryptocurrency landscape.
