South Korean Crypto Exchange Prixbit Closes Down Citing Financial Difficulties

The exchange announced it was shutting its operations in a website post dated August 9 that was titled ‘Prixbitend’. The startup said it has failed to overcome its financial difficulties and suspended its cryptocurrency trading services.

The exchange indicated that it had worked extremely hard to comply with money laundering and hacking requirements. The exchange has committed itself to returning all the customer deposits to customers who had provided their details. The exchange urged those who have not registered to do so as soon as possible to allow for a return.

Business Korea reports that the customers are concerned about their deposits given that the exchange was closed due to financial problems.

Business Korea also gave reasons why many korean based exchanges are in danger of closing down saying that only four exchanges have been able to directly connect with local banks allowing for fiat transactions while the rest have been restricted from the financial system. They also cite low trading volume as a major concern.

As per the Business Korea report about 200 Korean exchanges risk being closed down which is about 97 percent of the sector.

The harsh crypto climate in the country has seen many coins being listed in other countries while foreign exchanges are offering won-denominated services.

The report gives an example of Mediblock, a medical-linked blockchain initiative as well as Temco, a supply chain blockchain as some of the Korean based projects seeking to have their coins listed in other countries specifically Singapore and the US.

The failure of Prixbit comes in the wake of the industry working to enhance security and prevent fraud. Coinone has led by example doing security validation as well as publishing the listing rules in the recent past.

Prixbit is little known given that there is very scarce information about the exchange and looks like it was not very active when in operation. Going by the data from Foundico that tracks ICOs, the exchange was started in February this year and it was scheduled to start its official operations next month.

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