Genesis is saying farewell to its crypto spot trading services.
Genesis Global Trading (GGT), a US-based trading firm, is reportedly planning to terminate its cryptocurrency spot trading services by September 18th.
The decision comes months after a separate arm of the parent company, Genesis Global Capital, filed for bankruptcy. It is worth noting that several reports claim that the two events are unrelated.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
Is Decentralized Anonymous Blockchain a Myth? (Explained!)
According to media reports, the move to shut down the trading service was voluntary and taken for undisclosed business reasons.
A spokesman for the company was cited by Bloomberg, stating:
This decision was made voluntarily and for business reasons. We are working closely with regulatory authorities to coordinate an orderly discontinuation of services.
Genesis Global Trading, which initiated operations in 2013, is regulated by the New York State Department of Financial Services. Despite the closure of GGT's spot trading, the Digital Currency Group (DCG)-affiliated GGC International is set to continue offering spot and derivatives trading.
The decision to terminate GGT's services follows a tumultuous period for its sister company, Genesis Global Capital. The crypto lending service filed for Chapter 11 bankruptcy on January 19th after the US Securities and Exchange Commission (SEC) accused it of dealing in unregistered securities via its Earn program.
This regulatory action followed significant downsizing, as the company laid off 30% of its staff a week earlier. Genesis Global Capital also cited the downfall of Three Arrows Capital as a contributing factor to its troubles and had reportedly incurred losses due to the collapse of FTX.
Genesis Global Trading's decision to close its spot trading services represents another development in a year that has seen regulatory crackdowns and market volatility impact various arms of its parent company, DCG. While the move appears to be voluntary, it further underlines the evolving landscape of cryptocurrency trading and regulation.
