UK-based digital currency exchange, Netagio, has announced the shutdown of its exchange service. According to the press release, the company will restructure its business model by launching a wealth protection service next month. Netagio will provide global vault safekeeping options for high net worth individuals, family offices and institutional and retail investors.
On February 16th, 2015, Netagio closed its Bitcoin, EUR, GBP and USD exchange platform. All the customers will be able to withdraw their money and shut down their accounts during 30 days since the announcement.
“As with any early stage business, we have kept the business plan under close and constant review,” said CEO of Netagio, Simon Hamblin. “We have worked tirelessly to protect our customers’ interests and in response to demand introduced USD and EUR order books, followed by credit / debit card payments options.”
“From the outset we voluntarily subjected ourselves to rigorous external audits and have implemented strict regulatory and compliance requirements (AML and KYC) in order to operate an orderly and transparent Bitcoin market place and contribute to the overall transparency and best practice in the Bitcoin industry,” he added.
The new service is primarily targeted at companies that want to protect their funds. Netagio will help clients to diversify their savings by offering different money storage options all over the world.
Hamblin also stated: “We are immensely proud of our efforts and achievements to date while facing the reality of a stagnating market place in Europe, in an environment of regulatory and political uncertainty facing Bitcoin businesses. As experienced Board representatives we recognise when industry winds blow in other directions and it is time to review and restructure.”
The decision to close its exchange platform was provoked by the continuous stagnation in the bitcoin market. In spite of the positive predictions, the digital currency trade volumes significantly decreased in 2014. Moreover, the industry was affected by a number of hacking incidents and lack of regulation.
“We look forward to bringing our experience and established credibility to bear in the new wealth storage venture. At the time when trust in banks is low and potential bank bail-outs across Europe are a reality, the need for alternative ways to safeguard savings is clear, with cash savings significantly on the increase. Our heritage in gold and Bitcoin storage puts us on the right path to work with our partners to provide highly secure, globally located vaults to fulfil our customers’ cash safekeeping needs,” Hamblin said.
Located in the UK, Netagio noted the overall economic situation in the country is unfavorable for bitcoin growth. The uncertainty in bitcoin regulation urged many banks to terminate partnership agreements with cryptocurrency companies.