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Genesis Global Trading announced the closure of its spot crypto business in the United States. Genesis Global Trading, owned by Digital Currency Group (DCG), aims to shut down the entire operation by September 30.
The spot trading platform was among the few that were exempt from the bankruptcy filing of Genesis Global, the crypto lending firm that filed for Chapter 11 in January 2023.
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Why did Genesis end spot trading?
To reiterate, spot trading will end its operations only in the United States. GGC International Ltd. will remain operational, with both spot and derivatives trading services available for users based outside the U.S.
The reason for the closure of the U.S. branch can be attributed to the regulatory uncertainty in the United States. Genesis Bermuda Holdco Ltd., which is registered in the British Cayman Islands, owns GGC International. Due to the ownership of GGC International has the freedom to conduct business internationally.
A Genesis spokesperson said, “This decision was made voluntarily and for business reasons. We are working closely with regulatory authorities to coordinate an orderly discontinuation of services.”
Should the U.S. User Be Worried?
Genesis announced that the operations for its spot crypto service in the United States will begin winding down on September 18. However, the users have until September 21 to finish all trades and clear their accounts. By the end of September 30, all the remaining accounts of users in the United States will close down.
Amid the regulatory uncertainty, Genesis is another big name that has decided to exit the United States market. Genesis is not the only company to move out of the United States; earlier, the Winklevoss Twins also pondered exiting the United States.
With the SEC backed into a corner after the Ripple and Grayscale ETF cases, it is high time that the U.S. government steps up to provide regulatory relief. The continuous exit of major companies from the United States will only hinder the growth of the crypto industry in the country.
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