Key Points:
- tZero is shutting down its Cryptocurrency Application amid growing legal issues with cryptocurrencies.
- Customers will have until March 6 to withdraw their assets from the platform.
- The project emphasizes that this is not an exit but one of the steps to help grow more robust in the future.
Trading platform tZero will be shutting down its tZero Crypto app, which combines digital wallets with exchange services, on March 6, the company tweeted Friday morning.
The app outage comes as the company struggles to build its business while regulators are looking for specific regulations to control the crypto market, according to tweets from the company.
Users will have to withdraw their assets from the app before tZero Crypto ceases operations on March 6. Until then, the platform’s custodians will continue to custody customer cryptocurrencies.
TZero Crypto was launched in 2019 to create the first platform where customers can trade cryptocurrencies, blockchain-based securities, and traditional stocks using a single application, pending approval, according to the law. But those aspirations are complicated by the company’s troubles with regulators and other controversies.
In January of last year, the company paid $800,000 to settle an SEC order that meant the firm neglected to adequately disclose that it had shared order information with a broker-dealer affiliate and Blue Ocean Technologies, a trading partner in Singapore it acquired at a later date. Regulators also issued a cease-and-desist order as part of the settlement.
In addition, our regulated affiliates sharing project will play an essential role in bringing compliant digital asset securities to market, including crypto-assets that can be redeemed legally on a regulated securities platform.
“We will continue to focus on our unique regulated securities business, which we believe will be the venue where most digital asset securities will trade.”
However, the project emphasizes that stopping the application is not a way out but one of the steps to help develop more vital in the future.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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