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Over 75 cryptocurrency exchanges were closed this year

Cryptocurrency

We are only entering the fourth quarter of the year and, so far, more than 75 cryptocurrency exchanges worldwide have closed

The rate at which cryptocurrency exchanges are falling from the market is significantly higher this year. More than 75 cryptocurrency exchanges worldwide have already been closed. Some stopped operations because of hacks and scams, while others simply left the grid for unknown reasons.

A report by the Crypto Wisser Exchange Graveyard shows that four exchanges, including Italy’s Altsbit, closed after suffering heavy losses from hacks. Five more were forced to close after being identified as scams and 31 cryptocurrency exchanges voluntarily ceased operations.

The rest were categorized as AMI, since they closed and disappeared without disclosing any formal reasons. Those forced to shut down by the government this year are NLexch and Chilebit, which are based in the Netherlands and Chile, respectively. Experts in the crypto sector associate the closing of small exchanges with the popularity of decentralized exchanges (DEX) and the growing DeFi space.

The implementation of strict regulatory guidelines has also been pointed out as a reason for closing stock exchanges that they were no longer able to follow. The BitMEX and Kucoin futures are apparently at stake at the moment. The first is having a disagreement with the law after American prosecutors accused some of its executives.

There are also concerns about the feasibility of the exchange after CoinMetrics reported that more than $ 500 million bitcoins were withdrawn within four days between September 30 and October 3. KuCoin, on the other hand, suffered losses in excess of $ 200 million due to hacks, although it is said that the company managed to recover.

Disclaimer - OBN is an informational website which aims to give the latest blockchain related news to the readers. Articles on OBN should not be considered as investment advice. Trading cryptocurrencies is a high-risk investment, every user is advised to consult an expert before making any decisions.