One of Spain’s first cryptocurrency exchanges, 2gether, abruptly stopped operating, preventing its users from accessing their accounts. In an email sent to customers, the platform explained that the current state of the market required it to take this action. Additionally, the platform deleted its account on Twitter and completely disappeared from social media.
Bear Market Issues Reported by 2gether
Numerous cryptocurrency exchanges and lenders have been impacted by the recent decline in the market for cryptocurrencies, leaving them unable to refund customers’ money, bankrupt, or in the process of raising additional capital to continue operating. This time, 2gether, one of Spain’s first cryptocurrency exchanges, was impacted, preventing users from accessing its platform.
The exchange informed its customers of this situation via email, explaining that due to the state of the market, it was unable to continue providing for their needs. the business clarified:
We are compelled to discontinue the private account service after five years of serving the cryptocurrency community. We are unable to offer the service with the same quality and guarantees that other local providers do because of a lack of resources and the crypto winter.
The Spanish cryptocurrency exchange 2gether appears to be the first to be negatively impacted by the current crypto environment.
Holding Accounts Hostage
However, 2gether does not permit its users to withdraw their money to their own wallets or other exchanges. Instead, the business has shut down its platform and informed customers that in order to maintain the status of their accounts, each must contribute the equivalent of $20 (or $20.35) so that the exchange can continue to run.
Accounts that don’t have this much money in them by June 10th will be suspended, and any remaining cryptocurrencies will be liquidated. Asufin, the Financial Users Association of Spain, has reported that this action will have an impact on 100,000 customers who relied on 2gether to process their transactions and protect their funds. The group is getting ready to file a lawsuit on behalf of each and every exchange customer.
Regulators may use this circumstance as leverage to push for the adoption of clearer cryptocurrency regulations regarding the conduct of virtual asset service providers in the nation. The Bank of Spain’s Governor, Pablo Hernandez de Coz, emphasized the necessity of swiftly enacting such regulations in May to reduce the risk of financial instability.
What do you think of the account blockade by 2gether? Comment below with your answer and let us know.
In Venezuela, Sergio works as a journalist covering cryptocurrencies. He describes himself as having entered the cryptocurrency market after the price increase in December 2017 as being late to the game. With a background in computer engineering, a background in Venezuela, and personal experience with the social effects of the cryptocurrency boom, he offers a unique perspective on the success of cryptocurrencies and how it benefits the underbanked and unbanked.
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