75 Crypto Currency Exchanges Closed This Year

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A total of 75 cryptocurrency exchanges have been closed or closed for various reasons so far this year. Centralized exchanges constituted the majority of the closed crypto money exchanges.

According to a published report, as of October 5th this year, 75 stock exchanges ended their active life. Compared to last year, a 56% increase was observed in the number of closed exchanges, while the majority of the closed exchanges consisted of central exchanges.

The report cited reasons for voluntary closure, government closure, fraud and hacking as the reasons for the shutdown.

Decentralized Exchanges (DEX) Leading the Competition

According to the report, one of the major factors in the failure of central exchanges is seen as DEXs. DEXs, which are spread around the world, take a safer stance against pirate attacks with these aspects, while attracting more attention from users. In addition, DEXs, which can have lower transaction fees and larger transaction volume, succeed in leaving the central exchanges behind in these aspects.

Attracts Interest in Derivatives Exchanges

The report also touches on the growth in derivatives exchanges and the increased interest in alternative cryptocurrencies, while these are considered as other reasons for the failure of centralized exchanges. Priced based on the value of another asset, derivatives manage to get ahead of centralized exchanges with the user interest they collect.

It is not known how the Financial Conduct Authority restrictions on cryptocurrency derivatives in the UK market will affect these exchanges. Financial institutions in the country will not be able to sell their derivatives based on cryptocurrencies such as Bitcoin, Ether, and XRP to individual investors without a license as of January 6, 2021.

Stock Markets Face Regulatory Barriers

With the increasing popularity of crypto currencies, states are also interested in this issue. States aiming to keep crypto exchanges under control with various regulations cause them to shut down by damaging the decentralized structure inherent in crypto money.

The Dutch NLexch exchange announced that they were closed on September 1 with a statement they posted on their website. In the statement, it was stated that the Dutch Central Bank requires all cryptocurrency businesses in the country to register with them, otherwise their activities will be terminated. Stating that the fees collected during the registration process and afterwards are very high and they cannot afford it alone, NLexch said that it closed by thanking its users.


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