Due to prevailing market conditions, SIX Swiss Exchange has postponed the launch of its crypto services arm, SIX Digital Exchange (SDX).
It should be noted that the stock exchange is the main one in Switzerland and the third largest of its kind in Europe. In September of last year, the nation’s regulator gave it the green light to launch cryptocurrency-related services exclusively for regulated institutions. More specifically, SDX planned to provide custody and holding services to banks, hedge funds, and other licensed financial firms.
SIX Swiss Exchange postpones the launch of crypto services
Now, due to “current market conditions,” the launch of the exchange’s crypto services has been postponed indefinitely, The Wall Street Journal reported.
Last year, several of Switzerland’s traditional financial players joined the cryptocurrency industry. In addition to SIX Swiss Exchange, others include Arab Bank Switzerland, BBVA bank, and the country’s largest online bank, Swissquote. The stock exchange hoped to tap into the nation’s wealthy class to make crypto a part of its portfolio.
Recently, however, the crypto market has seen billions of dollars disappear, as its overall market capitalization plunged below $1 trillion. Bitcoin (BTC) dipped below the $25K mark, trading at $22,000 at time of writing, as its market dominance dwindled.
MicroStrategy, the largest institutional holder of Bitcoin, now has over $1.26 billion in unrealized losses.
Tesla’s Bitcoin stash is $320 million less than its value at the time of purchase, while El Salvador’s shares have halved. Many other crypto players have felt the drop, forcing them to act to avoid further losses.
The market crisis itches many
For example, crypto lending giant Celsius had to stop its withdrawal services amid a liquidity crunch.
In the meantime, crypto mining companies have sold their mined reserves or have sought alternative sources of income in the debt and equity markets. Those taking such actions include Riot Blockchain, Cathedra Bitcoin, and Marathon Digital.
On the other hand, CryptoCom and BlockFi have laid off hundreds, citing the prevailing market crisis. Note here that while these companies reduced their number of employees, Binance announced that it has 2,000 vacant positions.
If Bitcoin and the rest of the cryptocurrency market continue to trend down, many cryptocurrency holders are at risk of further sell-offs, leading to further sell-offs.
Still, investors like hedge fund manager Stan Druckenmiller and MicroStrategy CEO Michael Saylor remain positive about cryptocurrencies. Saylor said that Bitcoin is “unique” and “real,” which is why he stands by his $1 million price forecast for the digital asset.
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This post Switzerland’s SIX Digital Exchange Postpones Crypto Services Launch Amid Market Sell-Off (Report)
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