UK based Bitcoin exchange Netagio decided to shutdown entirely in pursuance of better business opportunities.
The company today informed its users about their decision to reconstruct its business, saying they would now be focusing on launching a wealth storage business by March this year. The bitcoin and other fiat trading services will therefore be suspended effective today — February 16th. Netagio customers will have options to withdraw their funds before March 16th.
Earlier, Canadian Bitcoin exchange Vault of Satoshi also closed citing similar reasons.
The Challenges in Operating UK Bitcoin Exchanges
Netagio discussed how their exchange was founded against the backdrop of growing Bitcoin trading volumes throughout the European market. As the company quoted in their notice, they had a concrete plan to set up a reliable marketplace for individuals with an “appetite for opportunity in the crypto currency space.”
But a series of recent setbacks in Bitcoin industry ultimately resisted them from reaching their goals. Netagio briefly pointed out the issues they faced while struggling to run their business with positive returns. They include everything from adverse price & volume drops and regulation uncertainties to banking monopolies and IT hacking challenges.
“Market share of Bitcoin trading globally continues to mirror Bitcoin adoption stages,” noted Netagio, “with China leading the way with 67%, the US capturing 27% of all Bitcoin trading, the EU following with 2.5% and the UK with a stagnating 0.25%, mostly as a result of a lack of regulatory guidelines and UK banks withdrawing banking support from British Bitcoin businesses.”
The company’s CEO Simon Hamblin further attempted to elaborate how Netagio tirelessly worked towards sustaining its reliableness among customers — by voluntarily standing up for rigorous audits and complying with stiff government regulations.
“We,” said Hamblin, “are immensely proud of our efforts and achievements to date while facing the reality of a stagnating market place in Europe, in an environment of regulatory and political uncertainty facing Bitcoin businesses.”
Netagio will now be able to briefly focus on their upcoming wealth storage venture. They believe themselves to be in a position to address people’s cash safekeeping needs.