Singaporean cryptocurrency exchange Fairdesk has revealed plans to scale back its operations next month. This step comes as a surprise, as there were no prior indications of difficulties facing the platform. However, it is in line with the broader trend of exchanges closing amid increasingly stringent crypto regulations imposed by national authorities.
Fairdesk will cease operations by November 30th
Launched in 2021 by former Binance and Morgan Stanley executives, Fairdesk has since gained a reputation for offering advanced trading features that meet the needs of new and seasoned traders. in X recent postFairdesk management announced that the exchange will cease operations effective November 30.
This came as an unexpected development for the cryptocurrency ecosystem given the lack of previous reports of conflicts surrounding Fairdesk. So far, the stock exchange has also not given a clear reason for this decision, citing only a change in government policies.
The text of the advertisement read:
Since the official launch of Fairdesk Cryptocurrency Exchange in 2021, it has played a positive role in providing high-quality trading services to a large number of traders. However, with the development of times and policy changes, we have decided to permanently close the site on November 30, 2024.
Fairdesk clients have until October 17 to close all futures and spot trading positions. However, the platform’s withdrawal service remains operational until November 30. Fairdesk has assured all customers of exemplary customer service during this period due to the unexpected inconvenience.
Cryptocurrency exchanges are ending under regulatory pressure
Aside from Fairdesk, other cryptocurrency exchanges around the world have begun to scale back their activities following increasing regulatory attention from national authorities.
In September, Gemini announced plans to close its Canadian market by the end of the year, seven months after filing a Pre-registration pledge By the Canadian Securities Administrators (CSA). Gemini was initially quick to fulfill this requirement after it filled out a pre-registration application in April. However, the New York-based exchange eventually chose to exit Canada along with exchanges like OKX, Paxos, etc.
Furthermore, the Bybit exchange has also closed its services in France due to the expected increased regulatory scrutiny that will be implemented through the EU Cryptoassets Market (MiCA) regulations starting from December 2024. However, other exchanges such as Binance have adopted the necessary modifications to operate under the MiCA system, starting with modifications to their stablecoin offerings.
It is certain that as digital assets gain more recognition in financial markets, more restrictive regulations will likely be implemented to protect users’ interests. Therefore, cryptocurrency exchanges must be prepared for further operational changes.
At the time of writing, the total value of the cryptocurrency market stands at $2.14 trillion after a 0.5% increase over the past 24 hours.
Featured image from Forkast News, chart from Tradingview