Genesis Global Trading has announced the termination of its U.S. spot cryptocurrency. It plans to cease all operations by September 30.
Genesis Global Trading has announced the termination of its U.S. spot cryptocurrency business. Digital Currency Group (DCG)-owned Genesis Global Trading plans to cease all operations by September 30.
The spot trading platform was among the few exempt from Genesis Global’s Chapter 11 filing in January 2023. Genesis Global was a cryptocurrency lending company that filed for bankruptcy in January 2023.
Why Did Genesis Discontinue Spot Trades?
To reiterate, only in the United States will spot trading cease operations. GGC International Ltd. will continue offering spot and derivatives trading services to clients outside the United States.
The regulatory ambiguity in the United States can be attributed to the closure of the U.S. branch. GGC International is owned by Genesis Bermuda Holdco Ltd., registered in the British Cayman Islands. Due to its ownership, GGC International is permitted to conduct international business.
According to a Genesis representative, this decision was made voluntarily and for business reasons. We are collaborating closely with regulatory authorities to ensure a smooth shutdown of services.”
Should U.S. Users Be Concerned?
Genesis announced that its spot cryptocurrency service in the United States will cease operations on September 18. Users have until September 21 to complete all transactions and close their accounts. By the end of September 30, all residual accounts for American users will be deleted.
In response to the regulatory uncertainty, Genesis has decided to leave the United States market. Genesis is one of many companies to leave the United States; the Winklevoss Twins also considered leaving the country.
With the SEC in a bind following the Ripple and Grayscale ETF cases, it is time for the U.S. government to provide regulatory relief. The continued departure of significant corporations from the United States will impede the development of the crypto industry in the country.
