Coinplug denies rumors of exchange shutdown
CPDAX, Coinplug’s cryptocurrency exchange, firmly denied rumors that it is halting services. The speculation had spread after the company sent out a notice saying it will stop conducting certain transactions for some main crypto coins, including bitcoin and ethereum. “We’re not closing down the business—it’s just a procedure to re-examine the items,” said a CPDAX source. Service for “Major coins” stopped On Thursday, CPDAX released an official statement that said the cryptocurrency exchange would stop deposit and withdrawal services for several crypto coins and trades for Korean won. “2019 was a difficult year for both cryptoasset investors and CPDAX,” the statement said, adding the regulatory environment remains challenging. Services were halted for a total of 10 trading pairs--bitcoin (BTC), ripple (XRP), ethereum (ETH) traded for Korean won and litecoin (LTC), ethereum (ETH), ethereum classic (ETC), EOS, TrueUSD (TUSD), bitcoin cash (BCH) and basic attention token (BAT) exchanged for bitcoin. CPDAX explained these pairs had “low transaction volume” or the assets were held by the exchange in small volumes. CPDAX says it’s “not closing down for good but partially halting transactions” Following the statement, several blockchain media forecast that Coinplug would stop its cryptocurrency business soon. On the same day, CPDAX deleted the notice and released a follow-up statement saying it was not closing down and that the measure was simply halting transactions for items with low liquidity. It repeated the purpose was to “cautiously examine” the services. Shutdown may be a matter of time Despite the second notice, forecasts persist that Coinplug will halt CPDAX services for good. The trade pairs listed in the CPDAX statement are trades with high transaction volume on other cryptocurrency exchanges. The fact that CPDAX has low transaction volume and holds a small amount of some assets is a critical flaw. One possible problem is the delayed approval of the special financial law, currently pending in the National Assembly. Coinplug has run the exchange since 2014, but was not able to issue real-name bank accounts. The company also expressed concern about the prolonging of policy uncertainties in its notice. Some industry experts predict that Coinplug is shifting direction to close down the exchange and focus on its platform business. Coinplug is currently working on the Metadium project, which allows users to share one ID to access multiple websites through blockchain. The project was selected to be included in Busan City’s blockchain economic zone, which exempts blockchain-related businesses from some regulation.