The Hong Kong-based cryptocurrency exchange HashKey has stopped all transactions involving wallets tied to Binance. This is a sign of more trouble for Binance. When HashKey made their choice public on April 19, they said that deposits and withdrawals to and from Exchange wallets would stop. This will happen in a month.
According to HashKey’s statement, the stop will begin on May 10, when payment services are turned off and end on May 17, when withdrawals are stopped. The exchange gave no specific reasons for this policy change, but it did call it a “policy change.”
HashKey clarified that this choice will not affect transactions involving cryptocurrency assets to verified and authenticated unhosted wallet addresses, sometimes called “whitelisted addresses.”
HashKey’s Move Amplifies Global Challenges for Binance
This new event makes things even worse for Binance around the world. Exchange was banned by the Nigerian government in February because they were worried about currency trade in the country. Because of this ban, Nigerian phone companies banned access to the websites of well-known cryptocurrency companies like Exchange.
An executive from Exchange named Tigran Gambaryan was arrested, and it was said that another executive was looking for safety in Kenya, making the situation even worse.
At the Token 2049 event in Dubai, where officials were also present, executives from Binance discussed these issues. Binance’s CEO, Richard Teng, discussed Gambaryan’s position and said the company is working with the Nigerian government to find a solution. Teng also said again that Exchange wants to work with police worldwide to stop financial crimes.
Also, COO Noah Perlman discussed the problems arising from Binance’s plea deal with the U.S. Department of Justice and the monitoring agreement with U.S. officials. Because Exchange was charged with money laundering, this agreement required a $4.3 billion settlement and hiring an independent compliance monitor for three years. This meant U.S. regulators would watch over all of Binance’s activities worldwide. As a result, Changpeng Zhao, the founder and CEO of Exchange, gave up his position after the deal.
Although Binance’s operations involve many complicated rules and issues, its interactions with groups like HashKey show how the cryptocurrency market is changing the global financial system.
