Cryptocurrency exchanges

MyCryptoWallet cryptocurrency exchange collapses, appoints liquidators – ABC News

Liquidators have been called in to liquidate an Australian cryptocurrency exchange, which could see investors lose everything due to a lack of regulation.

Key points:

  • A major Australian cryptocurrency exchange is in the process of liquidation
  • It is the second cryptocurrency exchange to collapse in two months in this country
  • Analysts say consumers should be aware of the risks of leaving money behind in crypto exchanges due to lack of regulation

Managing Director of Melbourne-based cryptocurrency exchange MyCryptoWallet Jaryd Tyson Koenigsmann appointed liquidators SV Partners on Friday, December 3, according to ASIC documents.

MyCryptoWallet was established in 2017 and previously claimed to have signed 20,000 clients.

The trading platform allowed people to buy and sell cryptocurrencies such as bitcoin, ethereum, XRP, and litecoin.

In April, ASIC also reportedly investigated several complaints about MyCryptoWallet.

The company’s accounts were frozen in 2019 after a dispute with the NAB.

SV Partners will publish its first creditors report on December 17th. The administrators are also looking for a buyer to acquire the “technological infrastructure” of the company.

MyCryptoWallet is the second cryptocurrency exchange to fail in two months. In October, Blockchain Global Limited collapsed, owing investors $ 21 million.

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Unlike banks, there is no government guarantee for cryptocurrency exchanges.

“I think it’s one of the things that a lot of consumers don’t understand, that the cryptocurrency held on the exchange isn’t theirs in the same way. They don’t have direct control over it. it, ”said Aaron of RMIT Blockchain Innovation Hub. Way.

A Senate inquiry recommended changes to tax laws, licensing and regulatory regimes to encourage digital and crypto-asset businesses to locate in Australia.

Global leader in digital transformation practice at Norton Rose Fulbright, Nick Abrahams, said it was essential for the government to act quickly to regulate trade and protect Australians.

“Because the digital currency exchange space is largely unregulated, it is difficult for people to assess which exchanges are trustworthy,” Mr. Abrahams said.

He said the only way to be sure your crypto was safe was to remove it from the exchange and store it in a “cold wallet.”

“A cold wallet is a small piece of material [that] is not connected to the Internet, [such as] a USB key. Of course, the problem is, you can lose your cold wallet or the password to access your cold wallet, ”he said.

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Bitcoin slipped 8.3% to US $ 49,166 – after hitting a low of US $ 41,967 over the weekend – as profit taking and macro concerns prompted nearly a billion dollars US dollars for sale through cryptocurrencies.

The trading platform allowed people to buy and sell cryptocurrencies such as bitcoin, ethereum, XRP, and litecoin.

Source: https://oltnews.com/mycryptowallet-cryptocurrency-exchange-collapses-appoints-liquidators-abc-news

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