Australian crypto exchange BTC.com.au announced its closure on June 17 and said “it’s not possible to continue operating” under the current market circumstances.
“Sadly, the worst thing that could possibly happen, did. “
Crypto winter claims another victim
The Terra LUNA/UST implosion in early May set off a cascade of events that rocked the crypto industry.
What’s come to light, including the mishandling of users’ funds, a laissez-faire attitude to risk, and accusations of fraud, will no doubt give regulators an open mandate to implement strict measures.
This knock-on effect has spread to other platforms, highlighting vulnerabilities across the entire crypto industry.
Recent weeks have seen crypto platforms freezing withdrawals to stay liquid, claims that major players, including Three Arrows Capital (3AC), are insolvent, and several exchanges announcing a cull in staff numbers.
As the mess unwinds, all of the above will plant downward pressure on token prices. And, against the backdrop of global economic decline, the outlook is gloomy.
Under these conditions, smaller players like BTC.com.au are hit hardest.
BTC.com.au says goodbye
BTC.com.au was launched in 2018 to provide safe and secure crypto trading for Australian users.
“We launched with a vision that cryptocurrency should be easy to access and available for everyone. Today, our platform has evolved into a full-featured trading platform used by thousands of everyday Australians, just like you!”
As a small exchange, details of its trading activities are not listed on data aggregators such as CoinMarketCap. However, just 13 tokens are available, as are OTC trading and AUD on/off ramping.
Announcing its closure, BTC.com.au said it had expanded its team 5-fold over the last year and added a range of new features and services in anticipation of further growth in user numbers.
However, market crashes in legacy and crypto markets had hit the firm hard, forcing its closure. Friday marks the end of all trading and deposits. But, more crucially, unrestricted user withdrawals are open.
“We will be keeping the platform alive until Friday, July 22nd to allow everyone time to finalise their accounts and to ensure everyone has downloaded their Trade Activity reports for tax purposes.”