HKVAEX, a crypto exchange based in Hong Kong reportedly linked to Binance, withdrew its license application from the Securities and Futures Commission of Hong Kong (SFC) on March 28.

The SFC had mandated all crypto exchanges to apply for operational licenses in the region by February 29. HKVAEX, which allegedly shares technical and other resources with Binance according to Chinese state media SCMP, submitted its application on January 4.

The SFC website confirms the withdrawal of HKVAEX's license application almost three months after filing. Consequently, HKVAEX is required to cease its operations in Hong Kong by May 31.

Binance, however, denied any association with HKVAEX when contacted by Cointelegraph, directing inquiries to HKVAEX directly. In 2024, three other virtual asset trading platforms, including the well-known global crypto exchange Huobi, also withdrew their operational license applications for undisclosed reasons.

Speculation within the Crypto Twitter community suggests various reasons for the withdrawals, such as requests to change the audit company or provide additional information. At its launch, HKVAEX was mistaken for VAEX, another crypto exchange in Hong Kong linked to KuCoin.

An HKVAEX representative clarified to Cointelegraph that they are distinct entities. Meanwhile, CommEx, a Russian crypto exchange with strong ties to Binance, announced the cessation of its operations and halted deposits on March 25.

Although CommEx asserted its independence from Binance, it acknowledged that some of its core members were former Binance employees. Binance had previously indicated a potential exit from Russia in early September 2023, following the departure of key local executives, including vice president of Eastern Europe Gleb Kostarev.