HashKey Suspends Transactions with Binance Amid Increasing Global Regulatory Pressures

In a strategic policy shift, HashKey Group, headquartered in Hong Kong, declared its imminent cessation of all financial transactions linked to Binance, including deposits and withdrawals. The directive, effective from next month, will see the suspension of deposits by May 10 and withdrawals by May 17, as stated in HashKey’s announcement on April 19.

The reasons behind this decision were not elaborated upon, with HashKey merely citing a “policy change.” Nevertheless, the exchange will maintain its services for transactions involving cryptocurrency assets to and from verified and authenticated non-custodial, or ‘whitelisted,’ wallet addresses.

This development marks another significant setback for Binance amidst increasing regulatory scrutiny worldwide. Earlier in February, the Nigerian government imposed a ban on Binance over concerns related to currency speculation, leading to the blockade of the exchange’s website access within the country. During these escalations, Binance executive Tigran Gambaryan was detained, adding to the company’s woes.

Amid these challenges, Binance’s leadership addressed the situation at the Token 2049 conference in Dubai. Richard Teng, Binance CEO, and Noah Perlman, COO, spoke candidly about the company’s ongoing struggles. Teng reassured stakeholders of active negotiations with the Nigerian authorities to address the detainment issue, emphasizing Binance’s commitment to legal compliance and cooperation with global law enforcement.

Further complicating Binance’s operational landscape is the surveillance agreement with U.S. regulators following a plea deal with the U.S. Department of Justice. This deal, resolving allegations of money laundering with a hefty $4.3 billion settlement, subjects Binance to three years of monitoring by an independent compliance overseer, effectively placing U.S. regulators in a pivotal role overseeing its global activities. In an additional repercussion, Binance’s founder, Changpeng Zhao, has stepped down from his executive position.

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