The Hong Kong-based crypto exchange HKVAEX, reportedly associated with Binance, withdrew its license application from the Securities and Futures Commission of Hong Kong (SFC) on March 28th.

HKVAEX announced its intention to apply for a license in October last year while clarifying that it operates as a distinct entity from Binance under BX Services Limited in Hong Kong.

However, there are shared resources between the companies, including the use of Binance servers for content retrieval, as indicated on the exchange’s website.

According to the Securities and Futures Commission (SFC) website, HKVAEX withdrew its license application nearly three months after submission. Following this move, HKVAEX is required to shut down its operations in Hong Kong by May 31.

In recent years, Hong Kong has doubled down its efforts to establish itself as a hub of Web3, as part of which it introduced an updated regulatory framework for cryptocurrencies in June 2023.

The revised rules enabled retail investors to engage in virtual asset trading, eliminating the previous requirement for traders to possess at least $1 million in bankable assets.

The SFC required all crypto exchange platforms intending to operate within the city-state to submit their applications before February 29th.

HKVAEX is not the only one to pull out. In 2024, three other virtual asset trading platforms also withdrew their operational license applications, including the well-known global exchange HTX (formerly known as Huobi).

Meanwhile, OSL and HashKey are currently the only two platforms that have received approval for their licenses from the SFC.