CGEX, the Malta-based subsidiary of South Korean crypto exchange Coinone, is terminating its crypto trading services without mentioning specific reasons.
According to a notice displayed on its website, the exchange will terminate all its services on September 18 at 2 am (UTC).
“Unfortunately, due to our circumstances, we decided that we could no longer maintain service, so we are terminating the service,” the exchange noted.
The announcement detailed that the exchange will stop all services on the specified date and will not allow its users to log in to the platform. It requested that customers withdraw their stored funds on the exchange as it will not retain customer information after the termination of the services.
“Your personal information (including transaction details) will be destroyed accordingly with the end of service. All assets held in your account can be withdrawn until the end of the service and further withdrawal will no longer be available after this date,” the announcement added.
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“We further inform you that personal information with obligatory preservation clauses will be safely stored until destroyed at the end of the obligated period as outlined by the Act.”
Backup plan gone bust
Launched in October 2018, the Malta-based exchange was offering crypto-to-crypto trading services. It also integrated Coinone’s operations in South Korea and Indonesia. The opening of the exchange in a jurisdiction like Malta was viewed as Coinone’s backup plan to avoid any crackdown on crypto in South Korea.
The announcement of the termination of CGEX’s service came two months after the suspension of crypto trading services on the platform. The exchange then suspended services including deposits, canceled active orders, and also disabled APIs.
Though the exchange then assured that the suspension was not permanent and it would relaunch in the third quarter of this year, it is now shutting down completely.
Meanwhile, a recent local media report claimed that 97 percent of South Korean crypto exchanges are on the verge of bankruptcy due to the low volume of transactions.