+ 4.58
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Centralized Cryptocurrency Exchange DX.Exchange Shuts Down

November 4, 2019 7:12 am
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Centralized Cryptocurrency Exchange DX.Exchange Shuts Down

DX.Exchange, a cryptocurrency exchange desk that utilizes Nasdaq Inc (NASDAQ:NDAQ) technology, is temporarily shutting down, the company announced on Sunday.

What Happened

The Estonia-based company’s board of directors is seeking either a merger or a sale of the platform. If it fails to do either, the company says it will take “appropriate action.”

“The costs of providing the required level of security, support, and technology is not economically feasible on our own,” the company said.

Why It Matters

DX.Exchange, launched in January, utilized Nasdaq’s matching engine and financial information exchange to avoid the problem of double-spending and fake volumes that often plague cryptocurrency exchange desks, a digital assets publication CoinDesk reports.

The cryptocurrency startup partnered with MPS Marketplace Securities to let its users own real-world stocks using tokens.

According to its concept, the users would own the cryptocurrency, while MPS would own the actual stocks. This would allow the users to get the same value on their tokens as the real stocks without having to buy them directly.

But Cyprus Securities and Exchange Commission (CySEC) suspended MPS's license in September, and the company is no longer allowed to participate in any investment-related activity unless the CySEC changes its decision.

What's Next

DX.Exchange has suspended all new deposits and trading on its platform. The exchange desk has assured its clients that their funds are safe, and they can withdraw them through an established procedure before Nov. 15.

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