Genesis Global Trading (GGT), a well-established name in the field of cryptocurrency trading, announced that its cryptocurrency spot trading service will be closed soon. The closing date, planned for September 18, 2023, is a voluntary decision of the company and indicates significant changes in the field of crypto trading. GGT, which is part of Digital Currency Group (DCG), emphasized that its decision had nothing to do with DCG’s past financial difficulties.
Cryptocurrency platform is shutting down
According to recent media reports, GGT has confirmed its intention to discontinue cryptocurrency spot trading. This move, while surprising to some, is described by GGT as a voluntary decision driven by commercial concerns. A company spokesperson said: “This decision was taken voluntarily and for commercial reasons. “We are working closely with regulatory authorities to coordinate an orderly suspension of services,” he said.
GGT has been a leading player in the world of cryptocurrency trading since its founding in 2013 and is registered with the New York State Department of Financial Services. Despite its connection to DCG, the closure of GGT’s spot trading service appears to be an independent decision and does not appear to be linked to DCG’s previous financial difficulties.
DCG and Genesis: What happens now?
It’s important to note that Genesis’ closure does not impact the broader DCG ecosystem. GGC International, a subsidiary of DCG, will continue to offer both spot and derivatives trading services, ensuring cryptocurrency investors still have options within the DCG network. Genesis Global Capital, a crypto lender under the DCG umbrella, faced significant setbacks earlier this year. In January, it filed for Chapter 11 bankruptcy following a legal dispute with the United States Securities and Exchange Commission (SEC). The SEC had accused Genesis Global Capital of offering unregistered securities through its Earn program. This legal dispute led to a number of difficulties, including the dismissal of staff and the suspension of withdrawals.
The problems at Genesis Global Capital also had ripple effects, leading to a legal dispute between the Gemini cryptocurrency exchange and the SEC. Gemini had significant funds tied to its Genesis Earn program and was charged by the SEC with unregistered securities offerings. DCG, led by Barry Silbert, has a significant share in the cryptocurrency market. He also owns Grayscale Investments, a company focused on cryptocurrency investments. Notably, Grayscale recently scored a legal victory when the SEC reversed its decision and agreed to consider Grayscale’s application to create a Bitcoin spot exchange-traded fund (ETF).
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