Binance's cryptocurrency exchange HKVAEX will stop allowing withdrawals and close all activities on May 1 after surrendering its license in Hong Kong before the launch of ETFs.

The HKVAEX crypto exchange, associated with the largest crypto exchange Binance globally, has now completely ceased its operations in Hong Kong. As previously reported by CoinGape, HKVAEX recently issued a statement announcing the suspension of withdrawals from the cryptocurrency exchange on April 30, with all operations set to cease from May 1.

This cessation of operations aligns with the introduction of spot Bitcoin and spot Ether ETFs in Hong Kong. Despite the anticipation, the ETFs only saw a trading volume of $12 million on the launch day. Bloomberg's senior ETF analyst, Eric Balchunas, remarked that the volume was commendable given the market conditions and dismissed criticisms regarding the perceived "poor performance" of these funds.

Binance's HKVAEX Withdraws License Application in Hong Kong

The crypto exchange HKVAEX, affiliated with Binance and also known as BX Services Ltd, recently retracted its application for a virtual asset trading platform license. Consequently, BX Services Ltd now joins the list of companies whose license applications have been either returned, rejected, or withdrawn on the SFC website in Hong Kong.

The securities regulator in Hong Kong had earlier mandated that crypto exchanges and companies apply for licenses by the deadline of February 29. HKVAEX withdrew its license application on March 28 for reasons that remain undisclosed. Speculations suggest it could be related to a request to change the auditing firm, insufficient documentation, or other factors. The application was initially submitted on January 4, and the head of operations at HKVAEX, Walton Chan, announced the closure, advising users to withdraw their assets by April 30.

SFC Concerns Over CZ and Disappointing ETF Launch in Hong Kong

Elizabeth Wong, the Head of Licensing at the SFC, raised significant concerns about the potential approval of Binance's license following the recent admission of guilt by Binance's co-founder and former CEO, Changpeng 'CZ' Zhao, regarding US anti-money laundering laws. The regulator appeared cautious about the exchange's intentions to obtain a license in the jurisdiction.

CZ's sentencing hearing is scheduled for today due to violations of anti-money laundering laws. Prosecutors are seeking a 3-year prison term, while CZ has requested probation similar to BitMEX executives. The total trading volume for crypto ETFs in Hong Kong amounted to $12.4 million, with the lower figures prompting traders to short Bitcoin immediately, leading to a drop in BTC price below $61,000 today.