HashKey, a crypto exchange, announced it would cease support for transactions related to Binance starting next month.

In a statement on April 19, the Hong Kong-based trading platform mentioned it would impose restrictions on deposits from Binance beginning May 10 and halt support for withdrawals to Binance-hosted wallet addresses by May 17. However, transactions involving virtual assets to whitelisted unhosted wallet addresses would remain unaffected, as these addresses are verified by the exchange.

HashKey attributed its decision to "a change in its policy" without providing further details.

Previously, in December 2023, HashKey discontinued support for crypto deposits from all third-party exchanges except Binance, stating it would only accept deposits exceeding 8,000 HKD from Binance, following specific guidelines.

HashKey Exchange is among the few licensed exchanges in Hong Kong, serving both institutional and retail investors.

The decision by HashKey adds to Binance's ongoing legal challenges across various jurisdictions.

Last month, an entity linked to the Richard Teng-crypto trading platform in Hong Kong, HKVAEX, ceased operations and withdrew its licensing application. Nigerian authorities also detained two executives from the platform, accusing the exchange of worsening foreign exchange challenges.

Despite these challenges, Binance has shifted towards a compliance-first approach and has made progress in its regulatory efforts, particularly in India and Dubai.

On the other hand, HashKey has seen significant developments in its operations. HashKey Capital announced regulatory approval to co-launch a spot Bitcoin exchange-traded fund (ETF) with Bosera International on April 15. Additionally, the Hong Kong Securities and Futures Commission (SFC) approved upgrading its existing License 9, enabling the platform to offer virtual asset fund product services to retail investors. Earlier, HashKey had introduced a global crypto trading platform licensed in Bermuda, offering digital asset trading services in multiple countries, except China and the United States.