Uh-oh. It looks like another bitcoin exchange has shut down. This time, the unsuspecting victim is Bitcoin Co. Ltd. (BX.in.th), one of the most popular trading platforms in Thailand.
Thailand Crypto Exchange Says Its Good-Byes
The company announced that no more deposits can be made after this week and that all trading will cease by September 30. At press time, no reason has been given for the closure, though executives have stated that they are going to focus on “other business opportunities.”
The exchange put out a statement reading:
We thank our loyal customers for using our BX.in.th services over the past five years and trust you have been happy with the services provided. Please note that all fund[s] are completely safe and all customers will receive 100 percent of their funds returned to them.
It’s good news to know that customers will not be cheated out of what they’ve deposited or purchased. All customers will receive their funds back upon the company’s official end, with money transferred either into standard bank accounts or third-party wallets by November 1 of this year. However, bitcoin is trading as low as $6,500 per unit on the exchange. That’s about $3,500 less than where one unit is trading globally.
In addition, the company will have no operational license from the Security and Exchange Commission (SEC) over the next year, meaning it will not be functioning as a cryptocurrency exchange over a 12-month period. The company has chosen not to renew its license for the time being.
The situation has led to panic among investors, who are concerned about the low trading prices for bitcoin and other cryptocurrencies in Thailand. It has also led to malicious actors entering the scene. The SEC recently warned of a phony Facebook account claiming to be associated with the platform attempting to divert and steal from respective traders.
Since the mid-point of this year, cryptocurrency exchanges, especially new ones, have proven vulnerable to negative circumstances that invoke shutdowns. Among the most recent victims is Cryptopia, a digital currency trading company based in New Zealand.
This Has Happened Before
The company suffered a serious breach in January of this year that caused thousands of dollars in assorted crypto funds to disappear overnight. While the company initially tried to pass the situation off as maintenance when people couldn’t access their accounts, Cryptopia eventually decided that liquidation was the best option for both customers and executives.
Another victim comes in the form of Coinome, a popular crypto exchange stationed in India up through mid-May. India has had a very mixed relationship with crypto and has even considered prison time for digital asset traders. The country has been struggling to implement proper crypto regulation for nearly two years, and exchanges like Coinome and ZebPay have disappeared as a result.
Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries.
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