Less than a year after launching its bitcoin and gold trading offerings, UK-based Netagio is getting out of the trading business, effective today.
The firm had extended its gold storage capabilities to bitcoin. From there, it added a bitcoin brokerage service, allowing users to trade gold for bitcoin. This was soon after expanded into a full order book-based trading service, and GBP, USD and EUR pairings were added. The company then phased out gold-based trading, instead focusing on its fiat-based offering.
Netagio said that it succeeded “in establishing a trusted Bitcoin marketplace,” although it appears to have struggled to gain traction. The company claimed that stagnation in the Bitcoin industry, particularly in trading, motivated its decision.
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Specifically, it pointed to “adverse price reaction,” regulatory uncertainty, “IT hacking challenges” and “the anticompetitive decision by banks to deny Bitcoin businesses a bank account and banking services.” Thus, the company claims there is an adverse effect on trading volumes, particularly in the UK.
According to a press release, the company now plans on leveraging its storage capabilities toward cash. Citing concerns with the global banking system, it hopes to cater to individuals and businesses that want to “to diversify their savings risk.” It did not go into details about what steps it is taking to meet regulatory requirements.
Customers have been given notice to withdraw funds and close their accounts within 30 days.