Binance has officially announced that they’ll be shutting down operations in the Chinese financial hub of Hong Kong. The announcement comes after the exchange was hit with a hack last month that led to the loss of $40 million in cryptocurrency. It’s not clear what the impact of the hack will be to the company, but the move is significant in that it signals that Binance is serious about staying in compliance with the laws of Hong Kong. World’s 1st Completely Free Educational Blockchain Course Available Online
As you can see, Binance has decided to shut down its services in Hong Kong. The exchange has been under a lot of pressure lately, following the government crackdown and the hacking that happened last year, and this decision is likely due to the pressure they are under.
On June 14, 2018, Hong Kong regulators shuttered the Bank of China’s Mongolian Branch for violating anti-money laundering laws. It’s uncertain whether the bank’s closure is related to the Hong Kong government’s recent actions against cryptocurrency exchanges and over-the-counter trading desks, but the incident may affect Binance’s operations in Hong Kong.
Despite many accusations and criminal charges leveled by various crypto-regulated countries across the globe, Binance has begun a new approach by withdrawing from certain jurisdictions. Binance said last week that it will be shutting operations in Italy, Germany, and the Netherlands, among other nations. Binance is now withdrawing from Hong Kong, adding to the list.
Withdrawal from Binance in Hong Kong
Binance’s CEO, Changpeng Zhao or CZ, has publicly said that new accounts for users located in Hong Kong would no longer be accepted. The CEO also went to Twitter, where he sent a message on his official profile.
As a result, CZ said in a tweet that Binance is shutting its Hong Kong office. Furthermore, he claims that all current active Binance users from Hong Kong have 90 days to withdraw all of their assets from their Binance accounts.
This is similar to what occurred the previous week in Italy, Germany, and the Netherlands.
Furthermore, Binance’s quick responses are apparent in Hong Kong’s latest laws and accusations against the company. Furthermore, the Hong Kong Regulatory Authority has accused Binance of operating its company without a legal license.
Furthermore, Binance claims that their activities are motivated by their greatest devotion to Hong Kong’s laws. Binance, on the other hand, is the first established cryptocurrency exchange to shut operations in Hong Kong.
The Reasons Why Everyone Is After Binance
Is Binance, the world’s biggest cryptocurrency exchange, a blessing or a burden for the industry’s growth? Furthermore, it’s a very speculative issue why all of the crypto-regulated nations are after Binance, constantly on its tail, cornering the well-known crypto exchange.
The major issue, on the other hand, is why all the crypto-regulated nations are swarming Binance and cornering it. Furthermore, many believe that seizing and removing the biggest crypto exchange from their nation would instantly convert all digital assets into cash and legal currencies.
Many of these crypto-regulated nations, on the other hand, have their own regulated crypto exchanges based on their respective jurisdictions. As a result, one such example is China, which has many high-profile exchanges inside the nation.
Furthermore, if other Chinese crypto exchanges are betting on development, Binance is the biggest roadblock. Furthermore, if Binance is no longer in the scene, other Chinese exchanges will have a better chance of succeeding.
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