Eqonex, a Nasdaq listed company, is shutting down its cryptocurrency exchange business. It cited rising competition and falling volumes as the reasons behind closing its crypto exchange.
Eqonex Closing Crypto Exchange
Eqonex Ltd., Nasdaq: EQOS), a company that provides digital assets financial services announced Monday the closure of its spot- and derivatives cryptocurrency exchange. According to the announcement:
By closing its crypto exchange, the company intends to exit from the highly competitive space.
Eqonex will be closed for trading at 8 AM (UCT) on August 22nd and withdrawals at 8 AM (UCT) on September 14th. The announcement states that withdrawal fees are waived.
Eqonex explained that intense market competition, low margins, and the significant technological load required to ensure optimal performance “has made running a profitable exchange increasingly challenging, especially in the current environment where crypto exchange volumes have fallen.”
This Nasdaq-listed firm will be focusing on cryptocurrency asset management and custodial services in the future. The firm’s asset management business includes Bletchley Park, a fund of crypto hedge funds. Digivault, the group’s digital asset custody business, is registered with the Financial Conduct Authority in the U.K.
Eqonex CEO Jonathan Farnell commented: “The recent extreme market volatility and declining trading volumes have added to the headwinds being felt by exchange operators.” He added:
Digivault is our asset management business and has already shown solid results with the resources we recently gave them.
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