There is hardly anything missed by Cryptowisser when it comes to describing what is happening in the global crypto industry. This online website usually, on its own or at the request of others, carries out crypto market analysis and comparative studies on crypto.
The website has recently carried out a thorough survey to find out which crypto exchanges are no longer available in 2021. The list has been published under the heading “Crypto exchange graveyard”. The report starts with a gesture that it is true that the crypto industry is expanding but so is the crypto graveyard.
The report notes that since 2021 till date, there have been several crypto exchanges that have been shut down for several reasons. The most obvious reason for the closure of the majority of these first is their failure to comply with the directions of the regulators. The other notable reason for their closures includes breach of access by unauthorized individuals causing stealing of funds and demanding ransomware. The third category of such exchanges is the one in which, crypto exchanges turned out to be “phony” and “scammers”. In this category though, there are only 6 such crypto exchanges that became defunct.
In this year alone, the report notes that the number of closed exchanges because of the aforesaid reasons has doubled since 2020. In this year, there are at least 80 crypto trading companies that are now no longer available in the crypto market. It seems quite perturbed to see that the average of exchanges shutting down is increasing, although the crypto market is rallying. Even cryptocurrencies are actively been adopted and are rapidly becoming part of mainstream financial and economics.
Cryptowisser has therefore tried to reduce down the list of reasons because of which exchanges were shut down this year. The first and foremost obvious reason according to Cryptowisser is failing to please their respective regulators.
There is no doubt that various governments in the world are trying to adopt cryptocurrencies. However, in doing so, they are bound to amend their regulations which sometimes favor exchange and sometimes they don’t. Resultantly, the exchange, which fails to comply, is technically knocked out. For instance, in many jurisdictions of the world, the regulators are insisting that local or foreign exchanges must obtain licenses and permissions. While for local exchanges, there is no option but to comply yet for offshore exchanges, there is a way out. What these offshore exchanges do is that they wrap up their business and bode farewell to the consumers in foreign lands.
Binance Exchange is a great example of such a practice. When Japan amended its crypto regulations, the Japanese regulator insisted that Binance Japan should also ensure compliance. However, to Binance Japan, the amendment was not acceptable to it and therefore Binance Japan simply closed lifted its branch from the country.
Still, Cryptowisser believes that the expansion of the crypto graveyard is not favorable for the global crypto industry.