Several crypto exchanges all around the world have halted their deposit and withdrawal operations. Due to this, people are raising concerns over the safety of their hard-earned money.
Vauld, a Singapore-based crypto exchange, became the latest example on July 4th when it announced the suspension of all operations on its platform.
In the meantime, we have made the difficult decision to suspend all withdrawals, trading and deposits on the Vauld platform with immediate effect.
— Vauld (@VauldOfficial) July 4, 2022
The CEO of Vauld, Darshan Bathija, said in a blog post that this crisis was caused due to its business partners’ inability to honor their financial commitments, and its customers withdrew nearly $197.7 million when the crypto market crashed after Terra, a stablecoin, collapsed.
Vauld is trying to solve its liquidity problems by bringing in new investors and is consulting with legal and financial advisors to restructure the company.
CoinFlex, a crypto derivatives trading platform, and Celsius have also frozen withdrawals due to liquidity problems caused by panic in the cryptocurrency market.
Crypto markets have been in a recession in the past few months for many reasons, one of which is globally high inflation rates. US inflation rates are at a 40-year high of 8.6%, while the UK’s inflation rates are at 9%.
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Authorities are taking action on the unregulated crypto market
The authority figures of many nations are starting to identify problems with this new asset class. Some have already made or are in the process of building regulatory bodies exclusively for crypto.
The Monetary Authority of Singapore is looking over Vauld’s case. South Korea is also creating regulations for crypto and has chosen influential people from its financial regulatory bodies to look after investors’ money and prevent scams.