Altcoin specific exchange Coinexchange.io will shut services on its platform due to financial difficulties, the company announced on Tuesday.
The exchange emphasized that the decision was driven by difficulties in business, and there was no breach in its securities.
“This is purely a business decision and there has not been a security breach or any other type of incident,” the exchange stated. “Unfortunately it is no longer economically viable for us to continue offering market services. The costs of providing the required level of security and support now outweigh our earnings.”
Though both trading services and deposits will be suspended on October 15, the exchange urged its clients to “cease any deposit and trade activity as soon as possible.”
The exchange also detailed that it will allow withdrawals of funds till December 1.
Currently, Coinexchange.io has around 550 markets and, according to Coinmarketcap.com, handled almost half-a-million worth of crypto trades in the last 24 hours.
The news of the closure of the exchange has also impacted the market as it created a rush among traders to dump many altcoins.
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CoinExchange exit dump.
— David [scotch maximalist] (@bearishbulltard) October 1, 2019
Impact of crypto-winter and unclear regulations on exchanges
Though Bitcoin recently showed some bullish signs, the markets for altcoins are still struggling. Most recently, Bitcoin Co., Thailand’s leading crypto exchange, shut its services without citing any specific reason behind the move.
In August, South Korean crypto exchange Coinone also decided to shut its Malta-based subsidiary following the termination of crypto trading by Bitmarket, a Polish digital asset exchange, just a month earlier.
However, the biggest blow came from the Indian crypto market this year as three crypto exchanges operating in the country ceased their services mostly because of the unclear regulations and hostility towards the sector.