The HKVAEX exchange, affiliated with Binance, has decided to shut down and has retracted its request for an operating license in Hong Kong as per a notice on the Securities and Futures Commission (SFC) website.

This crypto trading platform, known as BX Services Ltd, officially withdrew its application for a license on March 28, about three months after applying with the financial regulator.

They quickly announced the suspension and closure of their services early on March 29, offering users less than a month to withdraw their assets by April 30. The HKVAEX official website will be entirely closed by May 1, 2024.

Reports from last year hinted that Binance supported HKVAEX's quest to obtain a local crypto license in the region. The Hong Kong unit reportedly collaborated with the Richard Teng-led exchange and hosted joint events with the significant crypto company.

Some experts had warned about potential impacts on HKVAEX's licensing prospects due to Binance facing legal issues in the US but it is not clear if these incidents led to the license withdrawal.

Recent reports suggest that HKVAEX's withdrawal might be due to incomplete documentation or other undisclosed reasons.

HKVAEX isn't the only major applicant to have withdrawn its applications lately. For instance, HTX's Hong Kong branch withdrew its application temporarily last month before resubmitting it a few days later. It now seems unlikely that HKVAEX will reapply for the license.

This comes as the Hong Kong SFC tightens its regulations on the expanding industry, flagging top crypto firms like Mexc and Bybit for operating without licenses in its jurisdiction and labeling them as dubious virtual asset trading platforms.

In February, the registration period for crypto companies seeking licenses to work in Hong Kong ended, with the regulator repeatedly cautioning unregistered entities in its region to close their operations by the end of May.

A statement from HKVAEX reads, "We apologize for any inconvenience caused by the closure of our platform. We appreciate your support and trust in HKVAEX and encourage users to act accordingly by withdrawing their assets by April 30, 2024."