GO.Exchange Crypto Trading Platform to Shut Down Mid-March, Will This Affect OmiseGO (OMG)
On 30th January 2020, Go.Exchange, cryptocurrency trading platform announced that it was winding down its operations. According to the statement sent out to news outlets, this is a decision that was arrived at after realizing that regulatory requirements had begun to take a toll on its operations.
Closing the exchange was a difficult decision to make. Thanks to everyone who supported us. It was a great ride. You can find the full announcement here.https://t.co/inCg9Eup87
— GO.Exchange (@GOExchangeHQ) January 30, 2020
Go.Exchange is an Omise Holdings subsidiary, a financial services company based in Thailand. This is the company that is behind the creation of the OMG (OmiseGO) cryptocurrency. The statement went on to read that moving forward, the exchange platform would no longer be allowing trades to occur or accepting new clients.
The only transactions that would go on unrestricted would be the client withdrawals. Details included in the official statement indicates that clients have up to the 15th of March 2020 to withdraw all their available funds.
Uncertainty and Regulatory Challenges
According to the Go.Exchange team, the main reason why they decided to close shop was due to uncertainty and regulatory complexities. These factors combined had a huge impact on the cost/benefit analysis ratio making it difficult for the team to continue operating the exchange.
The Go.Exchange was introduced into the public domain in March 2019. The exchange launched with the sole purpose of providing a platform that was fully compliant with existing regulations, secure, and sustainable. The license to begin its operations was filed in the Malta jurisdiction. However, it appears now that the regulatory hurdles eventually have become too much for the team.
This is a PoS (proof of stake) company that was launched with the sole aim of providing different types of financial services. The company conducted an ICO (Initial Coin Offering) in July 2017 for OmiseGO and managed to raise a total of twenty-five million dollars. In August of the same year, OmiseGO was able to obtain a formal endorsement from the Ministry of Finance in Thailand.
Nonetheless, things have not been smooth sailing for the company as it saw its token prices flat line in 2019. The token is currently trading at $0.86, which is a ninety-seven percent decline from its highest trading price of twenty-five dollars. It should, therefore, not come as a surprise that the project has started to run out of funds.