Crypto exchange Txbit has announced its closure
Crypto exchange Txbit has announced its closure
The Netherlands-based cryptocurrency exchange Txbit has announced that it will cease operations due to challenging market conditions and the unclear legal status of cryptocurrencies.
"In an environment where compliance costs are rising and our product margins constantly face pressure, continuing as before has become untenable for us. We began our journey with a distinct vision, but regrettably, the current environment prevents us from continuing," the exchange said in a statement.
According to information published on the Txbit website, the first step in the closure process will begin with a temporary shutdown of the exchange on August 14, during which all open orders will be canceled. At the same time, trading functions will be suspended, while withdrawals will be restored once this process is completed.
The exchange is alerting clients to the KYC process and the likelihood of disruptions and withdrawal queues due to the expected large number of applications.
The exchange is expected to close for good on September 14, 2023.
Txbit has confirmed plans to liquidate its unused inventory of Txbit tokens in the coming days. According to the exchange, 1,510,406,151.2992582 tokens will be burned, representing 95.6559% of the total. At the same time, the token remains available for trading on PancakeSwap.
This news had a negative impact on the price of the token, which collapsed by more than 90% in just one hour.
Recall that in March this year, the Dutch Financial Markets Authority announced its intention to strengthen controls to ensure compliance with the new EU rules on digital assets.
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