XDEX, a Brazilian crypto exchange, announced on Wednesday the closure of its services.
The decision was fueled by factors like market protection, harsh competition in the industry, and also regulatory uncertainties.
“Today we announce that XDEX is starting the process of closing its activities,” the exchange stated. “The market projection, competition, and the few regulatory advances reduced the opportunities found at the beginning of the project and were the basis for this difficult decision made by the company.”
The exchange is owned by Grupo XP, Latin America’s largest stock brokerage.
“Ensuring safety and solidity always present, we will comply with all contractual obligations, following the terms stipulated in the XDEX Terms and Conditions of Use and Services,” the announcement added.
The announcement detailed that the users will receive 30 days to withdraw their funds from the crypto trading platform.
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“Clients must close their positions in cryptocurrencies and withdraw their balance in reais within the next 30 days from the announcement of this release,” the exchange added. “When making the withdrawal request, the funds will be sent to the bank account registered with XDEX within 1 business day, according to bank records.”
If any customer of the exchange failed to withdraw their holdings within the specified period, the exchange will automatically sell their holdings and deposit the fiat on their registered bank accounts.
Tumbling crypto markets
The exchange’s services came to an end after only 17 months of its establishment.
“Entrepreneurship is and has always been a great challenge, especially within an unregulated market. But to undertake is also to know the time to stop,” the exchange stated.
Though once seen as an emerging crypto market, many Brazilian digital currency exchanges are now falling apart.
In February, another two Brazilian exchanges – Latoex and Acesso – ceased their operations following a hefty fine imposed by the tax authorities. Both the exchanges were also experiencing dwindling trading volumes.