Crypto exchange Blackmoon, which planned to become the first platform to sell Telegram Open Network's Gram token, has decided to shut down, CoinDesk has reported citing the company CEO Oleg Seydak.
According to him, the platform has decided to shut down due to the high cost of complying with regulatory requirements:
"After in-depth analysis we concluded that running a crypto exchange in compliance with all modern [European Union] regulation including the Fifth Anti-Money Laundering Directive and licensing requirements (that are constantly changing unpredictably and unfavorably) is not competitive to unregulated alternatives that are available in the market at the moment."
A Blackmoon Crypto user recently said the exchange has raised the limits for withdrawing funds and cancelling fees.
Blackmoon has cooperated with Gram Vault, a Swiss custody service that planned to offer storage solutions for Gram. The relationship between Blackmoon and Telegram investors became public in fall. The US Securities and Exchange Commission (SEC) later banned the distribution of Gram tokens, a decision that has been confirmed by a court.
Blackmoon was founded back in 2015 by Flint Capital co-founder Oleg Seydak and Ilia Perekopsky, who would later become Telegram's vice president.
As part of its ICO held in 2017, Blackmoon Crypto raised $30M from investors in just one day.
Blackmoon Crypto had 3,800 users last summer, and the company expected to increase its number after the launch of TON.
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