The HKVAEX exchange, associated with Binance, is shutting down and has withdrawn its application for a operational license in Hong Kong, as per a notice on the Securities and Futures Commission (SFC) website.

Operating under BX Services Ltd, the crypto trading platform formally withdrew its license application on March 28, approximately three months after applying with the financial regulator. Subsequently, on March 29, the company announced a "Phased suspension and closure" of its services, allowing users less than a month to withdraw assets by April 30. The official HKVAEX website will be completely closed on May 1, 2024.

Reports last year indicated that Binance supported HKVAEX's attempt to obtain a local crypto license in the region. The Hong Kong entity reportedly collaborated with the Richard Teng-led exchange and held joint events with the major crypto firm. However, concerns were raised by industry experts about Binance's legal issues in the US affecting HKVAEX's licensing prospects in Asia.

It remains unclear if Binance's regulatory challenges influenced the recent license withdrawal. Meanwhile, there have been reports suggesting that HKVAEX's withdrawal may be due to incomplete documentation or other factors. HKVAEX's decision to withdraw its application is in line with recent actions by other major applicants. Last month, HTX's Hong Kong subsidiary briefly withdrew its application before resubmitting it after a few days, although HKVAEX doesn't seem likely to resubmit its application.

This development aligns with the Hong Kong SFC's ongoing efforts to regulate the burgeoning crypto industry. The SFC has intensified its scrutiny by flagging prominent crypto firms like Mexc and Bybit for operating without licenses within its jurisdiction, categorizing them as suspicious virtual asset trading platforms.

Moreover, February marked the end of the registration window for crypto firms seeking licensing to operate in Hong Kong. The regulator has consistently warned that unregistered entities in its jurisdiction must cease operations by the end of May.

A statement from HKVAEX apologizes for any inconvenience caused by the platform's closure, expresses gratitude for users' support and trust, and urges users to withdraw their assets by April 30, 2024.