South Korean cryptocurrency exchange, Prixbit, has official bid adieu to the cryptocurrency markets.
On its official website post dated Aug 09, the South Korean regulated exchange platform had indicated that it will cease its cryptocurrency trading activities in view of financial hurdles and investor concerns regarding their deposits. As soon as the news broke, several traders flocked to the website for withdrawing their holdings.
The news comes following a startling revelation by a report that over ninety seven percent (97%) of South Korean cryptocurrency exchange platforms, that is close to two hundred exchange businesses, are battling against monetary crisis and low consumer demands. Many of which, during their relentless struggle to keep their heads above the water, are going into liquidation.
On what is being viewed as a chain reaction to the region’s tightening of regulatory reforms concerning the cryptocurrency industry and the malpractices involved in it, several exchange platforms that reviewing their survival tactics.
While many prominent exchange services considered seeking safe havens overseas, such Bithumb in Hong Kong and Upbit in Singapore, others, like Coinone, are closing down their overseas subsidiaries. GCEX, Coinone’s Malta-based cryptocurrency exchange recently announced going under next month.
What went wrong for the South Korean cryptocurrency exchange?
Even though there is no adequate explanation to Prixbit’s sudden collapse, BusinessKorea reports that the firm went out of business primarily due to insufficient capital to run the day-to-day operations.
The exchange founder blamed the unfavorable internal and external influences, along with lack of cooperation from management for its suspension. He has also urged his users to forward the account details to enable full refund of their deposits as early as possible. Moreover, the exchange has confirmed that refunds of its native tokens, such as PRX and GRX, have already been completed.
Apart from the four influential digital currency exchange platforms in the country, who have been allowed access to the banking institutions for fiat transactions, the government has offered no respite to the small-time upcoming businesses by denying them of fiat-based services. That, coupled with shrinking interests, has made sustainability near to impossible.