Crypto exchange Txbit has said in a statement that it’s going to permanently shut down operations due to uncertain regulatory landscapes and unfavorable market conditions. The exchange cited the escalating costs of compliance and continuous pressure on product margins as key contributors to its inability to sustain profitability, media reports said.
“In light of rising compliance expenses and persistent pressure on our product margins, the viability of maintaining our current operations has become unsustainable,” the official announcement stated, reflecting on the evolution of the crypto exchange industry. “While our journey began with a distinct vision, the prevailing conditions have regrettably led us to this juncture where continuation is no longer feasible.”
Previously, in 2018, Txbit had praised the Netherlands for its favorable legal framework and regulatory environment for cryptocurrency businesses. However, the current climate has made it challenging for the exchange to navigate these factors effectively.
Txbit’s website is presently offline as part of a planned service outage. During this period, all open orders will be canceled, and trading services will be halted. Once the outage concludes, the exchange will reinstate withdrawal functionalities.
The closure of Txbit’s website is scheduled for September 14th. The exchange has issued a call to its user base, urging them to withdraw their funds before 12:00 PM UTC on that date to ensure the safe retrieval of their assets. Any remaining funds after the specified date will be irretrievable.
Txbit, which possesses its own token, has disclosed plans to burn the non-circulated portion of its supply, accounting for over 95% of the total. Despite the closure, the exchange has indicated that the Txbit token will continue to be tradable on Pancakeswap in the foreseeable future.
In closing, Txbit expressed sincere apologies for any disruptions caused by the impending shutdown and expressed gratitude for the unwavering support received during its operational journey. The exchange extended well wishes to other projects in the crypto space, expressing hope for their success in their respective journeys.
Founded in 2016 and launched in 2019, Txbit, headquartered in Amsterdam, embarked on its venture with a vision that has now encountered challenges that have led to this difficult decision.
