Singapore-based cryptocurrency exchange Fairdesk has revealed plans to wind down its operations next month. This move is surprising, as there have never been any signs of difficulty facing the stage. However, it is in line with the wider practice of exchanges closing amid strict crypto regulations imposed by national authorities.
Fairdesk will cease operations on November 30
Fairdesk was launched in 2021 by former Binance and Morgan Stanley executives and has since gained a reputation for providing advanced trading features that cater to both new and seasoned traders. In a recent X post, Fairdesk executives shared that the exchange will cease operations as of November 30.
This comes as an unexpected development for the crypto ecosystem due to the lack of previous reports of struggles surrounding Fairdesk. So far, the exchange has not provided a clear reason for this decision citing only a change in government policies.
The announcement read as follows:
Since the official launch of Fairdesk Cryptocurrency Exchange in 2021, it has played a great role in providing high-quality trading services to a large number of traders. However, due to the development of times and policy changes, we have decided to permanently close the website on November 30, 2024.
Fairdesk clients have until October 17 to close all futures and trading positions. However, the platform’s cancellation service remains active until November 30. Fairdesk has assured all customers of superior customer service during this period given the unexpected disruption.
Crypto Exchanges Collapse Under Regulatory Pressure
Apart from Fairdesk, other cryptocurrency exchanges around the world have started to reduce their operations following increased regulatory interest from national authorities.
In September, Gemini announced plans to close its Canadian market at the end of the year seven months after the introduction of pre-registration by the Canadian Securities Administrators (CSA). Gemini was first quick to meet this requirement as it completed its pre-registration application in April. However, the New York-based exchange eventually chose to exit Canada along with exchanges such as OKX, Paxos, etc.
In addition, Bybit exchange has also closed its services in France due to increased regulatory scrutiny that will be implemented by the European Union’s Market in Crypto Assets (MiCA) regulations starting in December 2024. However, some exchanges such as Binance have adopted the necessary adjustments to operate under the MiCA regime, starting with the modification of their stablecoin offerings.
Indeed, as digital assets gain more recognition in financial markets, more restrictive regulations may be implemented to protect the interests of users. Therefore, crypto exchanges should be prepared for additional operational changes.
At the time of writing, the total crypto market capitalization is estimated at $2.14 trillion following an increase of 0.5% in the last 24 hours.
Featured image from Forkast News, chart from Tradingview