South Korean cryptocurrency exchange Coinnest has begun the process to shut its services as of April 16, according to a pop-up announcement on the platform’s official website.
The official notification detailed that Coinnest will follow four stages for the complete closure of its trading services. The exchange has already stopped the registration for new memberships on April 16 and will shut trading services on May 30. Customers will get one more month before the digital asset exchange suspends withdrawal from its platform on June 30.
“Please be sure to withdraw your assets before the withdrawal date. It is difficult to withdraw after withdrawal,” the exchange urged the customer.
The exchange has lowered its withdrawal fees and minimum withdrawal sum to ease the exit process for its clients.
Coinnest, which used to be one of the largest Korean exchanges, closes today after facing various embezzlement issues, technical errors, and low trading volume. pic.twitter.com/UKdcHIyMuF
— Doo Wan Nam (@DooWanNam) April 16, 2019
KVB PRIME Strikes UK with Influential Finance Summit SponsorshipGo to article >>
Coinnest, however, did not disclose the reason behind the decision.
The impact of the decision is also reflected on crypto markets, as in the last 24 hours, the exchange has handled only $23,000 worth of trades, as per Coinmarketcap.com’s data.
A questionable exchange?
In January this year, the South Korean exchange made headlines as it accidentally transferred more than $5 million worth crypto assets during a scheduled airdrop.
Last year, two Coinnest executives were charged for accepting bribes for listing multiple digital currencies on the platform.
The so-called “crypto winter” and regulatory uncertainties towards the industry has also forced multiple other exchanges to wrap up their services. An Indian crypto exchange – Coindelta – put down its shutters last month due to strict regulations imposed by the authorities, Finance Magnates reported. The exchange was launched only 18 months before its shut down.
Lack of liquidity also forced another Ukrainian crypto exchange Liqui to stop its trading services in January.
Meanwhile, Bithumb, the largest crypto exchange in South Korea, has reported a loss of $180 million for 2018.