Another cryptocurrency exchange shuts down. This time BitMarket has been forced to cease its operations due to low liquidity.
Sequel to the announcement, whenever users try to access the exchange using the website, they encounter the following text message in both English and Polish:
“Dear Users, we regret to inform you that due to the loss of liquidity, since 08/07/2019, Bitmarket.pl/net was forced to cease its operations. We will inform you about further steps.”
Bitmarket’s daily trading volume was relatively low at around $850,000. But, there are uncertainties on why trading is continuing when the exchange is expected to be closed. Customers are still permitted to trade on the platform using API keys.
Change in requirements
A Redditor named OdoBanks notified today that the exchange had displayed several red flags in the past weeks leading to its shutdown. Prior to the closure, users were reportedly forced to change their passwords and their API keys and there was no explanation for it.
OdoBanks also claimed that some withdrawal attempts were halted with the exchange. Users were asked to comply with additional know-your-client (KYC) requirements. In such cases, the customers were asked for a scanned copy of their ID, photo of their face holding the ID and a note confirming the customer was using BitMarket to buy bitcoin themselves as an investment (which was a new requirement).
He added that:
“Exchange representatives […] claimed that this was the long overdue KYC requirement and that they were only targeting people with expired IDs. They never addressed users’ accusations of hiding the fact that the exchange had been hacked.”