When Thailand-based cryptocurrency exchange Bitcoin Co (bx.in.th) announced its shut down, everyone was stunned. No solid reason was provided, except for the fact that they don’t want to keep their Securities and Exchange Commission (SEC) license for 2020. But this reason doesn’t provide the complete answer.
If anything, it leaves us wondering: Why do they not want to keep their license for 2020?
The announcement on the website doesn’t say anything specific:
While an official answer to this question is yet to come, theories have now started emerging on the subject. Here we’re going to explore some of those theories to make a guess about what might possibly have happened with Bitcoin Co.
Increased regulatory pressure
Bitcoin Co was the only cryptocurrency exchange in Thailand to be approved directly by the Finance Minister. But that doesn’t mean it was immune to the regulations.
Laws recently enforced in the country to regulate the crypto sector are too invasive in nature. They require exchanges to provide user data whenever asked by the authorities.
Bitcoin Co may not have wanted to share this data with the government.
Increasing market saturation
Another theory floating in the market is that the exchange might have decided to shut down due to purely economic reasons. It was facing increased pressure from the competition, and the market condition is not very good right now.
The company was one of the pioneers in the cryptocurrency market of Thailand, so there’s a very good chance they might have seen market saturation early on. Instead of operating in a risky and saturated market they might have chosen the option of exit at the right time.
Whatever the reason, the closure of Bitcoin Co has certainly opened a door of opportunity for some new players in the market. Now it will be interesting to see which of the other exchanges extract the most benefits from this opportunity.