Singapore’s Fairdesk Exchange to Shut Down: Here’s Why
- Fairdesk announces full shutdown.
- Withdrawals will be available until November 30.
- Broader issues may drive further shutdowns.
The crypto industry continues to face increasing regulatory challenges across the world. Amid this pressure, many exchanges are caving.
Sponsored
Recently, the Singapore-based Fairdesk exchange announced a permanent shutdown of its services by November 30. This is part of a growing trend of crypto exchanges shutting down due to compliance issues.
Why Fairdesk is Shutting Down
Crypto exchanges are increasingly caving under compliance pressure. On Thursday, October 10, the Singapore-based Fairdesk exchange announced a permanent shutdown by November 30, 2024.
The exchange will close all active spot and future positions by October 17. After this, users will only have access to withdrawals. Users will have until November 30 to withdraw all their funds from the exchange.
Since its launch in 2021, the exchange attracted significant traction in North America. However, it has since found itself unable to bear the increasing regulatory and compliance burdens.
Regulatory Risks Increase Pressure on Exchanges
The shutting down of Fairdesk is part of a growing trend of exchanges collapsing under regulatory pressure. Regulators globally are tightening rules on exchanges, citing investor protection and anti-money laundering concerns.
Amid this pressure, exchanges face growing compliance costs, which some can’t bear. This year, several changes shut down due to similar issues. For instance, in September, regulatory risks prompted Gemini to shut down in Canada. In August, Bybit shut down in France, citing European MiCA regulations.
While these regulations have a role in preventing money laundering and terror financing and protecting investors, smaller exchanges are struggling to keep up. This will likely favor major players, leading to a consolidation in the exchange space.
On the Flipside
- While Singapore is becoming a global hub for crypto, the country is implementing strict regulations.
- Recently, Singapore banned Bitcoin ETFs , citing the speculative and risky nature of crypto.
Why This Matters
Fairdesk’s shutting down reveals the issues smaller exchanges have with handling complex compliance requirements.
Read more about Singapore’s probe into Worldcoin:
Worldcoin Probe: Singapore Investigates Account Misuse
Read more about phishing scams:
How to Stay Safe from Phishing Scams As DeFi User Loses $35M
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Mutant Ape NFT ripoff creator to forfeit $1.4M, avoids prison
ZK-proofs are more affordable than legacy ID systems — Cysic founder
Expert Reveals Obstacle Keeping XRP Price from Big Rally as This Ripple Rival Aims for 12000x Run