75 cryptocurrency exchanges have shut down so far this year. Compared to 2019, the number of platforms that have shut down has jumped by 56%, according to data provided by Cryptowisser.
The vast majority of the platforms affected are centralized exchanges.
Cryptowisser has reported several possible reasons for the closure of such a high number of exchanges. One of them is the increasing competition from the DeFi sector, derivatives platforms as well as services that offer the trading of non-crypto assets.
Another possible reason behind the massive closure of platforms is the tightening of the regulation of the sector. Thus, at the beginning of the year, the fifth EU directive came into force, forcing all crypto-related companies to implement KYC procedures in order to fight against money laundering and the financing of terrorism. As a result, the mining pool SimpleCoin and the bitcoin gaming platform Chopcoin shut down.
In addition, some exchanges are also ceasing their operations as a result of hacker attacks, by their own decision or at the request of the authorities, Cryptowisser reports. However, many platforms simply stop operating after the "mysterious disappearance" of the company's management team.
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