Txbit, a Netherlands-based cryptocurrency exchange, has announced that it will shut down its operations on September 14th, 2023. The exchange cited uncertain regulatory conditions and adverse market shifts as the main reasons for its closure.
Txbit, the Latest Victim of Crypto Regulations
According to its official announcement, Txbit said that it began its journey with a distinct vision, but regretfully, the current environment prevents it from continuing. The exchange said that it faced increasing compliance costs and pressure on its product margins, making it untenable for it to operate.
Txbit also apologized to its customers and asked them to withdraw their funds before 12:00 PM UTC on September 14th, 2023. The exchange warned that any funds left after that date will not be retrievable.
Txbit also said that it will burn the remaining non-circulated supply of its native token, Txbit Token (TXBIT), which accounts for more than 95% of the total supply. The token will still be available for trading on Pancakeswap in the future.
Txbit was established in 2016 and officially hit the market in 2019. It offered spot trading for various cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Dogecoin, and many others. According to CoinMarketCap, Txbit had a daily trading volume of about $17.8 million as of August 14th, 2023.
The closure of Txbit is another example of the challenges that crypto exchanges face in the current regulatory climate. Many countries have tightened their rules and oversight on crypto-related activities, such as trading, mining, and taxation. Some exchanges have decided to exit certain markets or cease their operations altogether due to these difficulties.
The crypto community expressed its shock and sadness over the news of Txbit’s closure. Some users praised the exchange for its service and professionalism, while others lamented the loss of a reliable platform. Some also speculated on the possible causes and implications of the closure for the crypto industry.
