Crypto exchange HashKey recently announced that it will be ending support for Binance-related transactions next month. This decision comes as part of a change in policy, although specifics of the new rules have not been disclosed. The Hong Kong-based platform will restrict deposits from Binance starting on May 10 and will completely cease support for virtual asset withdrawals to Binance-hosted wallet addresses by May 17. Despite these changes, transactions involving virtual assets to whitelisted unhosted wallet addresses will not be affected.
The termination of support from HashKey adds to the growing list of challenges that Binance has been facing in various legal jurisdictions. In the past month, Binance has come under scrutiny in multiple countries, including Nigeria, where two executives were detained over foreign exchange challenges. However, Binance has been making efforts to improve its compliance and regulatory standing, with recent progress seen in India and Dubai.
While HashKey is ending support for Binance-related transactions, the exchange has made significant advancements in its operations. Just a few days before the announcement, HashKey Capital received regulatory clearance to co-launch a spot Bitcoin exchange-traded fund (ETF) with Bosera International. This approval by the Hong Kong Securities and Futures Commission (SFC) allows HashKey to offer virtual asset fund product services to retail investors. Additionally, the exchange unveiled a global crypto trading platform that received licensing in Bermuda, excluding China and the United States.
The decision by HashKey to end support for Binance-related transactions marks a significant shift in the relationship between the two exchanges. As HashKey moves forward with its new policies, the impact on Binance and its regulatory challenges remains to be seen. However, both exchanges are making strides in adapting to the evolving regulatory landscape in the cryptocurrency industry.