Netherlands-based cryptocurrency exchange Txbit is ceasing operations due to uncertain regulations and unfavorable market conditions, which have made it difficult to maintain profitability. The exchange cites escalating compliance costs and diminishing profit margins as the primary reasons. Despite previously characterizing the Netherlands as crypto-friendly, the situation has since changed.
The exchange’s website is currently offline for planned maintenance, during which all active orders will be canceled, and trading will be suspended. Withdrawals will become available after the maintenance period. The shutdown is scheduled for September 14, and customers are strongly advised to withdraw their funds before this date. Any remaining funds after the shutdown will be irretrievable.
Txbit possesses its own token and intends to burn a significant portion of the remaining supply. The token will still be tradable on Pancakeswap in the future. This process will entail the burning of approximately 1,510,406,151 Txbit tokens, equivalent to 95.65% of the total supply. One more important thing for the Txbit users, they can easily withdraw funds until 12:00 PM UTC on September 14, 2023. Due to the expected high demand, there might be a brief queue for withdrawals and KYC processing.
Txbit expresses regret for any inconvenience resulting from the shutdown and extends gratitude to its customers for their support. They also convey best wishes for success to other projects within the crypto space. Established in Amsterdam, Txbit was founded in 2016 and officially launched in 2019.
Similar to Txbit on June 16, 2023, Binance exited the Netherlands due to its failure to obtain approval for registration as a virtual asset service provider (VASP) license, as required by Dutch crypto regulations. Consequently, Binance is no longer able to provide services to clients in the Netherlands.
Various other factors besides regulatory changes and adverse market conditions can lead to the shutdown of cryptocurrency exchanges. These include liquidity problems, significant breaches of security, mismanagement of funds, and a substantial volume of withdrawals. Similarly, on April 1, 2023, the American-based cryptocurrency exchange Bittrex ceased operations due to challenges posed by the U.S. regulatory and economic environment.