Hong Kong-based crypto exchange HKVAEX has decided to withdraw its licence with the Securities and Futures Commission. The Securities and Futures Commission (SFC) had set the deadline for all crypto platforms planning to operate in the city-state to submit their applications for 29 February 2024.

In this context, HKVAEX had initially expressed its intention to apply for a licence in October of the previous year, emphasising its distinction from Binance as an entity operating under BX Services Limited in Hong Kong. According to cryptopotato.com, despite this distinction, there were shared resources between HKVAEX and Binance, including the use of Binance servers for content retrieval, as stated on the exchange's website. The withdrawal of the licence application occurred nearly three months after its submission, according to information available on the SFC website.

Consequently, HKVAEX is mandated to cease its operations in Hong Kong by 31 May 2024. Hong Kong's adoption of Web3 technologies Hong Kong has endeavoured to position itself as a centre for Web3 technologies in recent years, culminating in the introduction of updated regulatory measures for cryptocurrencies in June 2023. These revisions aimed to facilitate virtual asset trading for retail investors by eliminating the previous requirement for traders to possess a minimum of USD 1 million in bankable assets.

As part of the regulatory overhaul, all cryptocurrency exchange platforms seeking to operate within Hong Kong were mandated to submit their licence applications before February 29th. HKVAEX's withdrawal from the licencing process is not an isolated incident. In 2024, three other virtual asset trading platforms also withdrew their operational licence applications, including HTX, which was formerly known as Huobi.

At the time of writing, only OSL and HashKey have secured approval for their licences from the SFC, making them the sole licensed platforms in operation within Hong Kong's regulatory framework. .