HashKey, a crypto exchange based in Hong Kong, declared its intention to discontinue transactions associated with Binance, effective next month.

In an announcement dated April 19, the trading platform specified plans to implement restrictions on deposits from Binance starting May 10 and to cease support for withdrawals to Binance-held wallet addresses by May 17. However, transactions involving virtual assets to whitelisted unhosted wallet addresses would continue unaffected, as these addresses undergo verification by the exchange.

HashKey cited "a change in its policy" as the rationale behind its decision, though no further elaboration was provided.

Previously, in December 2023, HashKey terminated support for crypto deposits from all third-party exchanges except Binance, instituting guidelines accepting deposits exceeding 8,000 HKD solely from Binance.

A licensed exchange in Hong Kong, HashKey Exchange caters to both institutional and retail investors.

HashKey's move compounds Binance's ongoing legal entanglements across diverse jurisdictions.

Recently, an entity linked to the Richard Teng-crypto trading platform in Hong Kong, HKVAEX, shuttered operations and withdrew its licensing application. Nigerian authorities detained two executives from the platform last month, alleging exacerbation of foreign exchange challenges.

Despite these hurdles, Binance has pivoted toward a compliance-centric approach, making headway in regulatory endeavors, particularly in India and Dubai.

Conversely, HashKey has witnessed significant operational advancements. HashKey Capital received 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) greenlit an upgrade to its existing License 9, empowering the platform to furnish virtual asset fund product services to retail investors. Earlier, HashKey introduced a global crypto trading platform licensed in Bermuda, offering digital asset trading services across numerous countries, excluding China and the United States.