Crypto Exchange CGEX to shut shop a year after launch in Malta

Representational Image. Source: Pixabay

A year after it was launched in Malta, cryptocurrency exchange CGEX or Coinone Global Exchange has announced that it will terminate its services in September.

The exchange, launched by one of the biggest cryptocurrency companies in South Korea, claimed that it decided to shut shop because it could not maintain service.

CGEX had entered Malta in October 2018 after the island country has taken multiple steps to make it blockchain-friendly giving it the moniker blockchain island.

CEO Cha Myung-hoon had said during the launch that CGEX would work towards becoming a global trading platform which provides a distinguished exchange experience to users.

The company has also asked all its customers to withdraw their assets before the closure date. “First of all, we would like to thank our customers for our exchange service. Unfortunately, due to our circumstances, we decided that we could no longer maintain service, so we are terminating the service,” it said in a notice.

The Maltese government has been supporting blockchain and also introduced three bills in Parliament. Following this, a number of major cryptocurrency players decided to move their base to Malta.

However, there has been a global opposition to the blockchain with different governments and central banks putting a ban on it.

International Monetary Fund (IMF) also warned against the use of cryptocurrency and blockchain citing its susceptibility to be used for terrorism-related activities and money laundering.