Go Exchange shutters due to low activity and tight regulation
Go Exchange tried to use innovation based on the OmiseGo protocol, but faced the issue of low volumes and a strict regulatory environment.
Go Exchange tried to push innovation using the OmiseGo protocol, but ran into the problem of low trading activity and a strict regulatory environment. Even though the platform launched officially only a few months ago, it has seen little trading activity and is being forced to wind down operations.
The withdrawal window runs until March 15, according to the official notice. However, the exchange has already begun closing all trading and suspending new deposits.
"From January 30, 2020, we will no longer accept customers and will not allow transactions on the exchange, except withdrawals. For existing customers, it is no longer possible to deposit or execute trades, and you have until March 15, 2020 23:00 UTC to withdraw all assets from your account. If you still have limit orders that need to be filled, please cancel them."
Malta license required AMLD-5 compliance
Go Exchange started its activities in mid-2018, when the bear market had not yet hit bottom. Altcoins were still briefly popular, then dropped quickly. During this time, exchanges faced tighter regulations, which ultimately discouraged the exchange from pursuing a license.
Go Exchange tried to obtain a trading license in Malta, following Binance and other exchanges. But Malta also had to comply with the EU's AMLD5 rules, which imposed even stricter reporting and KYC requirements. The Go Exchange team was negotiating for a license up to December 2019, but abandoned it at the last moment due to much tighter regulations and more expensive reporting than expected. The Go Exchange team explained in a statement that the decision to forgo a license was based on these factors.
"Despite our progress on the license, we decided to halt the effort due to external factors, such as the increasing complexity of regulation and uncertainty around how cryptocurrency regulation would evolve, which significantly changed the exchange's cost-benefit analysis."
The OmiseGo ecosystem used the Ethereum network to deliver side-chain solutions. OmiseGo aimed to revolutionize payments and bring a blockchain solution to the financial sector. The OmiseGo project secured several partnerships in Southeast Asia. But the altcoin bear market did not spare this project, and OMG lost most of its value too.
Go Exchange joins the ranks of closed exchanges, including CryptoBridge and CoinExchange. Cobinhood will also be temporarily closed for audits. But there are several smaller exchanges still at risk of going under after the latest bear market dragged altcoin trading down. OMG, the original asset of the OmiseGo ecosystem, is now trading at only $0.88, while at the peak of the altcoin market prices were nearly $20.
