Japanese messaging giant Line has decided to shut down its cryptocurrency exchange business in the midst of the ongoing crypto winter.
Line-owned cryptocurrency exchange Bitfront officially announced on November 27 a plan to completely shut down the platform by March 2023.
According to the statement, the shutdown was prompted by the ongoing cryptocurrency bear market and other issues in the cryptocurrency industry.
Despite the shutdown of the exchange, Line will continue to run its other blockchain ventures, including Line’s blockchain ecosystem and Link (LN) token, the announcement notes, stating:
“Despite our efforts to overcome the challenges in this rapidly evolving industry, we have regrettably determined that we must shut down Bitfront in order to continue to grow Line’s blockchain ecosystem and Link’s token economy.”
Bitfront also stressed that the decision to shut down the exchange was made in the “best interest” of the Line ecosystem and is not related to the ongoing industry scandal involving the FTX exchange.
Per the announcement, Bitfront will take a phased approach to suspending its services, halting registrations and credit card payments on November 28. The platform then plans to suspend further deposits and interest payments from LN interest products and proceed with related LN withdrawals by mid-December.
By the end of December, Bitfront aims to stop all crypto and fiat deposits along with trading suspension and cancellation of open orders. The full suspension of withdrawals is scheduled for March 31, 2023, while clients would still be able to claim their assets in different jurisdictions in the United States.
As Cointelegraph previously reported, Line launched its proprietary crypto exchange in 2018 as a Singapore-based company. Originally known as BitBox, the company changed its name to Bitfront and moved to the US in February 2020. The exchange has scaled back some of its operations in recent years, suspending services in South Korea in August 2021. .
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Despite being a smaller crypto exchange, Bitfront has significant trading volumes at the time of writing. According to CoinGecko data, Bitfront’s daily trading volume stands at $55 million, and the exchange trades a total of five cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Link, Litecoin (LTC), and Tether ( USDT).
This post Line Shuts Down Crypto Exchange to Focus on Blockchain and LN Token
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