Hong Kong-based cryptocurrency exchange HashKey announced that it will stop accepting deposits and processing withdrawals for wallets linked to Binance.
Hashkey said in a statement released April 19 that the changes will take effect next month, with deposits ending May 10 and withdrawals ending May 17.
Hashkey did not provide specifics about the decision, saying only that it was a “policy change.”
However, according to a statement from the exchange, transactions for cryptocurrency assets and verified and authenticated non-hosted wallet addresses (whitelist addresses) will continue unaffected.
HashKey’s decision further compounds the challenges Binance faces globally. In February, the Nigerian government banned Binance over concerns about currency speculation in the country.
Nigerian telecommunications companies have been instructed to block access to the websites of these popular cryptocurrency companies. During this process, Binance executive Tigran Gambaryan was detained, and another executive was reported to be hiding in Kenya.
At the ongoing Token 2049 event in Dubai, Binance’s top executives Richard Teng and COO Noah Perlman highlighted the challenges facing cryptocurrency exchanges.
Addressing Gambaryan’s plight, Teng confirmed that the company was actively working with the Nigerian government to resolve the issue.
He also emphasized Binance’s commitment to working with law enforcement agencies around the world to fight financial crime.
COO Perlman spoke about the obstacles posed by monitoring agreements with U.S. regulators that resulted from Binance’s plea agreement with the U.S. Department of Justice after the exchange pleaded guilty to money laundering charges and agreed to do so. A $4.3 billion settlement is needed to resolve the case.
The agreement also mandated an independent compliance monitor for three years, essentially making the United States the regulatory arbiter of Binance’s global operations.
Additionally, Binance founder and CEO Changpeng Zhao stepped down from his position.