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South Korean Crypto Exchange PrixBit shuts down

Samson Ononeme | Aug. 22, 2019
South Korean Crypto Exchange PrixBit shuts down

South Korean crypto exchange Prixbit has officially shut down, terminating all its services related to digital currencies.

August 22, 2019 | AtoZ Markets - Prixbit, the South Korean cryptocurrency exchange has shut its doors to services related to cryptocurrencies. This announcement was first made on August 9 via the exchange’s website. 

PrixBit shuts down may be due to financial distress

While the exchange did not give any specific reason behind the harsh move, according to BusinessKorea, it was accelerated by the financial difficulties faced by the exchange.

Due to negative internal and external influences, management difficulties could not be overcome and normal operation became impossible,” the founder of the exchange stated.

According to the notice, the exchange tackled with serious issues including hacking, money laundering, and voice phishing; however, now it had to bid adieu to its business.

Prixbit assured its customers that they will be fully reimbursed as they have asked them to provide customer details necessary for a refund process as soon as possible. It also detailed that most of the refunds involving the exchange’s native tokens – PRX and GRX – has already been completed.

South Korean exchanges struggling to proceed with their operations

Despite being a major market for crypto trading, most of the crypto exchanges in South Korea are struggling to continue their operations. Except for four major digital asset exchanges in the country, others don’t have access to the banking ecosystem, so they cannot offer fiat-based services.

This also resulted in low trading volume in those exchanges, making it hard to sustain operations. Moreover, many South Korean blockchain companies are seeking overseas listing for their coins as many foreign exchanges are offering won-denominated services to lure the companies.

BusinessKorea also wrote that 97 percent of domestic crypto exchanges are on the verge of bankruptcy. Though major exchanges in South Korea are doing comparatively well, Coinone recently announced that it is going to shut its Malta-based subsidiary CGEX in September 2019.

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