The Nasdaq-listed firm Eqonex is closing its cryptocurrency exchange business. The company cited high competition among crypto trading platforms and fallen volumes as key reasons for shutting down its exchange.
Closing Eqonex Crypto Exchange
Eqonex Ltd. (Nasdaq: EQOS), a digital asset financial services company, on Monday announced the closure of its spot and derivatives cryptocurrency exchange. The announcement stated:
The company will proactively exit the crowded crypto exchange space by closing the exchange.
The Econex Exchange will be closed for withdrawals on August 22 at 8 am (UCT) and on September 14 at 8 am (UCT). All withdrawal fees will be waived, the announcement notes.
Eqonex explained that intense market competition, low margins, and the significant technological load required to ensure optimal performance “has made running a profitable exchange increasingly challenging, especially in the current environment where crypto exchange volumes have fallen.”
The Nasdaq-listed company will focus on crypto asset management and custody services going forward. The firm’s asset management business includes Bletchley Park, a fund of crypto hedge funds. Digivault, the group’s digital asset custody business, is registered with the Financial Conduct Authority in the UK
Eqonex CEO Jonathan Farnell commented: “The recent extreme market volatility and declining trading volumes have added to the headwinds being felt by exchange operators.” He added:
Our asset management and custody business, DigiVault, has already made solid progress with the additional resources we recently allocated to them.
