Cryptocurrency exchange BITFRONT, a subsidiary of the Asian social media empire LINE Corporation, announced Monday its plan to exit the crypto market after four years of operation.
The exchange, launched initially as BITBOX in 2018 in the Asian jurisdiction, Singapore, was rebranded to BITFRONT as part of its expansion plan to extend its reach to the international market. The company later moved to the United States in 2020 and has been servicing users in the region until its closure announcement today.
BITFRONT to Suspend Trading Next Year
According to BITFRONT, the planned closure was voluntary as it prepares to shift its focus to the LINE blockchain, another subsidiary of LINE Corporation, to enhance the ecosystem development and adoption.
“Despite our efforts to overcome the challenges in this rapidly-evolving industry, we have regretfully determined that we need to shut down BITFRONT in order to continue growing the LINE blockchain ecosystem and LINK token economy,” the company said.
The exchange noted that the decision to shut down the platform was not influenced by “recent issues related to certain exchanges that have been accused of misconduct.”
BITFRONT has suspended new sign-ups and credit card payments on the platform today. The company also noted that users have until March 2023 to withdraw all their assets from the platform, as withdrawals will be permanently closed.
The crypto firm also noted that interest on deposits made from December 5 to December 11 would be paid on December 13, and users can check the paid interest on its history even after the suspension of the product.
Not the First
BITFRONT is one of the many exchanges in the industry to close down operations this year. Last month, crypto trading firm LocalCryptos shut down operations after five years, citing the current crypto winter and lack of regulatory clarity.
In July, 25 crypto exchanges exited the market during the peak of the first round of the bear market, although the companies were mainly startups that could not weather the storm, Finbold reported.
While these small exchanges opined that leaving the industry was the best way to maintain stability, the big fish in the space, such as Coinbase, CryptoCom and ByBit, resulted in laying off dozens of employees to cut down operational costs.
