Bitspark, a crypto exchange based in Hong Kong, will be shutting down operations. Many thought this was due to Coronavirus outbreaks, but that's not the case. The exchange announced that it would stop all of its operations from March 4, 2020.
Crypto Exchange Shutdown
According to the company’s CEO, this decision to shut down was not undertaken lightly. This is especially so considering that the exchange has enjoyed impressive success. For instance, he pointed to their Cash Point product they launched last year. He said since the launch, they have seen 400% month on month growth.
Before March 4, the exchange will continue to offer some limited services. He said that any customer who wished to withdraw their funds could do so by contacting the company. After that, the exchange will be disabled for 90 days.
Bitspark Exchange Was Doing Great...
Before the shutdown, the exchange was doing quite well. It planned to launch several new projects. For instance, on December 27, the company announced that it had 144 trading pairs and supported 12 currencies. Besides that, it revealed that it had issued the PHP and HKD stable coins. It also claimed that it had a steady stream of customers coming in from over 30 nations.
The company CEO noted that the exchange held the record for being the first to conduct end-to-end remittances via BTC in 2014. Besides that, it held the record in Asia for being the first to offer over 20 tokens in 2014. Additionally, it was the first exchange in Asia to have insurance cover.
The exchange was founded in 2014 and it’s based in Hong Kong. It operated a web-based platform that allows users to send and receive payments via crypto. The exchange’s website claims it was the first to offer a cash-in, cash-out feature for cross border transfers between the Philippines and Hong Kong.
Reason for Shutdown
Some may have suspected that the shutdown was due to pressure from the Coronavirus and Hong Kong protests. However, the CEO said this was not the case. He said that the shutdown was due to an internal restructuring process. According to him, this had not worked out as planned and decided to shut down the exchange. However, he conceded that the protests and the coronavirus outbreak had not made things any easier.
Business in Hong Kong has experienced a major slow down due to the Hong Kong protests. The problems have been exacerbated by the coronavirus outbreak. This has driven many investors out of the region, especially with numbers being reported to be over 25 thousand for those infected with over 490 reported deaths.
On January 31, the SCMP reported that Hong Kong banks had shut down 30% of all the physical locations to limit the risk of spreading the virus. Various US airlines have also suspended flights to Hong Kong until February 20 due to a massive drop in passengers.
While the coronavirus may have hit the traditional world of finance hard in Asia, it appears to be a boon for Bitcoin. Prices for the leading crypto have reached above 9,800 in the past few days.
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