Nasdaq-listed digital assets services firm, EQONEX announced that it is going to be taking down its crypto exchange service to cut down the high cost of its operations amid falling trading volume.
According to the announcement, the crypto exchange will discontinue its trading service from August 22. However, customers will be able to withdraw their funds until 14 September.
EQONEX’s native token, EQO’s trading will be discontinued with “immediate effect” and users can not withdraw it anymore.
The company stated that it is taking “decisive action” to streamline its operation. It will focus more on operations, which will provide immersive revenue growth as well as financial sustainability.
EQONEX CEO Jonathan Farnell stated that the recent extreme market volatility and falling trading volumes forced operators to wind up their exchange. The closing will allow the firm to focus more on its asset management and custodian services.
He said, “We take a realistic view that our exchange will not move the needle for us financially over the near-to-medium term. We don’t see value in continuing to bear the costs of operating an exchange during what may be a prolonged market downturn. We have conviction that proactively exiting the crowded exchange space is the right decision to deliver shareholder value.”
EQONEX also committed that the company has a plan to launch a Structured Products business in the nearby future. It will allow professional investors and institutions to embrace crypto products with suitable investment opportunities.
Furthermore, owing to EQONEX’s major Asset Management and Custody operations operating from the UK and most of the members of the Executive Management team belonging to the UK, it plans to relocate its principal place of business from Hong Kong to the United Kingdom.
Along with this, the firm revealed the hiring of seniors in the Asset Management team for its expansion in Asia and Europe.
The termination of the exchange will enable EQONEX to focus more on its rapidly growing asset-management and custodian wing, Digivault. Last year, it became the first crypto custodian in the United Kingdom to win regulatory approval from the Financial Conduct Authority.
Recently, FCA has disclosed a set of rules for the marketing of high-risk investments.
