InsideBitcoins.com

Bitspark Shutters Operations Amid Internal Conflicts and Virus Outbreak 

Bitspark

Bitspark, a cryptocurrency exchange based out of Hong Kong, would cease operations in the coming weeks. 

According to an official press release, the company chief executive and co-founder George Harrap announced that the firm would be shutting down, advising users to move their funds to other exchange platforms on or before March 4, 2020. After the deadline, the company would restrict login access for a period of 90 days, although users will still be able to request their funds from the company’s support page.

Company Turmoil and the Coronavirus 

In the release, Harrap explained that the abrupt closure was an unfortunate turn of events for the exchange, especially as it had started to report impressive financial figures for the past few months. As he pointed out, the exchange introduced Cash Point- a remittance service- back in 2019, and between that period, they had recorded a 400 percent growth in volumes month-over-month.

The document also highlighted the exit of Maxine Ryan, its co-founder and erstwhile Chief Operations Officer (COO). Ryan stepped down from her role as COO back in December 2019, and according to a Twitter thread she made in response to the exchange’s closure announcement yesterday, her exit caused a need for the firm to restructure its operations. Sadly, this move wasn’t conducted effectively, and that led to the eventual closure. 

Ryan also pointed out that the closure was due in part to the outbreak of the coronavirus- an epidemic that started in the Wuhan region and which is ravaging China and the world. In China, the virus has claimed the lives of over 420 people, with another estimated 12,000 affected (all figures accurate at press time). 

“This paired with the landscape of Hong Kong with protests and the coronavirus where Bitspark HQ is located. The team and shareholders decided this was the best way forward to prevent the integrity decay of the company,” Ryan clarified. 

AML Change Causes More Exchange Shutdowns 

Bitspark is undoubtedly not the only exchange to be shutting down in the past few months. However, while its demise as a result of both human and natural causes, most others have had to close their doors due to an imminent change coming to the global crypto landscape. 

Over the past two months, numerous exchanges have had to close shop due to the imminent implementation of the Fifth Anti-Money Laundering Directive (AMLD5), an AML regulation that is set to affect all cryptocurrency asset custodians- especially exchanges- across the European Union. 

The upcoming policy will force asset custodians and crypto firms to adopt Know Your Customer (KYC) measures, collecting information on their users and the source of funds used in transactions. While several countries have fought the implementation of these laws, others have been welcoming, leading to crypto firms to shut down.

Top brokers for buying and trading cryptocurrencies

  • Platform
  • Features
  • Rating
  • Visit Site
  • US-Friendly
  • Paypal accepted
  • 12+ cryptocurrencies
4.5/5

Visit Site
75% of retail investors lose money.
eToro Reviews

    eToro Reviews

    https://insidebitcoins.com/visit/etoro-newsCreate your account
    Hide eToro Reviews
    • Best broker for non-US countries
    • Trade crypto CFDs, forex and stocks
    • No withdrawal or deposit fees
    4.5/5

    Visit Site
    80.5% of retail investors lose money.
    Plus500 Reviews

      Plus500 Reviews

      https://insidebitcoins.com/visit/plus500-newsCreate your account
      Hide Plus500 Reviews
      Remember, all trading carries risk. Past performance is no guarantee of future results.
      Avatar

      Jimmy has been following the development of blockchain for several years, and he is optimistic about its potential to democratize the financial system.