Prixbit, South Korean Crypto Exchange has Ceased Its Operations over Financial Crisis

Prixbit, the South Korean cryptocurrency exchange has declared the ending of its services related to crypto. Prixbit, which had closed its operations as of 9^th August, has failed to control its financial challenges and suspended its cryptocurrency trading operations. Several investors have condemned the shutdown of the exchange as they were stressed over withdrawing their investments.

In a site post dated 9^th August, titled ‘Prixbitend,’ the exchange pronounced that it would stop its operations. A local press eventually detailed the move. Moreover, 97 percent of South Korean crypto exchanges are confronting a financial crisis, a recent report revealed.

Furthermore, the report stated the division of the local market in which four exchanges can associate with local banks for fiat exchanges while the rest have been closed out from the financial framework and low exchanging volume.

Besides, Prixbit’s collapse comes as the sector attempts to tighten the security and return to the fundamentals. Coinone has been particularly active in this regard, completing a security validation and issuing listing rules recently, when its Malta exchange is shutting down. First declared on 9^th August on the exchange’s site, the exchange has now totally shut down its operations and started refunds to its customers.

BusinessKorea (Korean Magazine) wrote that a rough estimate of 200 Korean exchanges is in the risk of shutting down, which is about 97 percent of the entire sector.  Even though the exchange did not indicate a particular explanation for this rough move, as per BusinessKorea, it was augmented by the financial challenges faced by the exchange.

The founder of the exchange stated –

Due to negative internal and external influences, management difficulties could not be overcome and normal operation became impossible,

As per the notice, the exchange handled the significant issues including money laundering, hacking, and voice phishing, nonetheless, presently it needed to close its business. Prixbit guaranteed its clients that they would get a full refund and requested that they give customer details which are essential for the refund procedure as early as possible. Additionally, it also stated that the refunds which involve the exchange’s local tokens like PRX and GRX had been completed already.

In spite of being a significant market for crypto exchanging, several crypto exchanges in South Korea are struggling to proceed with their operations. Aside from four noteworthy digital asset exchanges in the nation, others do not have access to the financial ecosystem, so they will not be in a position to offer fiat-based services. This additionally resulted in low exchanging volume in those trades, making it difficult to continue operations.