HashKey halts Binance transactions amid global challenges

Hong Kong-based crypto exchange HashKey has announced that it will stop accepting deposits and handling withdrawals to and from wallets linked to Binance. 

In a statement released on April 19, Hashkey said the change will take effect next month, with deposits ending on May 10 and withdrawals on May 17. 

On April 19, Hong Kong’s licensed exchange HashKey stated that due to platform policy adjustments, it would suspend digital asset deposits and withdrawals from Binance. HasheKey had earlier stated that it would only accept deposits from Binance, the only third-party exchange.…

— Wu Blockchain (@WuBlockchain) April 19, 2024

Hashkey did not give specific details behind its decision, only stating that it was a “policy change.”

However, per the exchange’s statement, transactions involving crypto assets to verified and authenticated unhosted wallet addresses, known as whitelisted addresses, will continue unaffected.

This decision by HashKey adds to the challenges faced by Binance on a global scale. In February, the Nigerian government banned Binance due to concerns about currency speculation in the country. 

Nigerian telecommunications companies were instructed to block access to the websites of these prominent crypto firms. In the process, one Binance executive, Tigran Gambaryan, was detained, while another is alleged to be hiding in Kenya.

During the ongoing Token 2049 in Dubai, Binance’s top executives, CEO Richard Teng and COO Noah Perlman, highlighted the woes facing the crypto exchange. 

Teng addressed Gambaryan’s predicament, assuring that the company was actively engaging with the Nigerian government to resolve the matter.

He also emphasized Binance’s dedication to collaborating with global law enforcement agencies to combat financial crimes.

On his part, COO Perlman spoke about the hurdles posed by the monitoring agreement with U.S. regulators, which came as a result of Binance’s plea agreement with the U.S. Department of Justice, after the exchange admitted guilt to money laundering charges brought against it and agreed to a $4.3 billion settlement to resolve the case.

The agreement also mandated an independent compliance monitor for three years, essentially making the U.S. a regulatory referee for Binance’s global operations.

It also saw Binance’s founder and CEOChangpeng Zhao step down from his role.