DCG Announces Closure of TradeBlock Due to Challenging Regulatory Environment in the US

Digital Currency Group (DCG), a leading digital-asset conglomerate, has decided to shut down its subsidiary TradeBlock. According to a Bloomberg report, the closure of the platform, which provides trade execution, pricing, and prime brokerage services to institutional investors, will take effect from May 31st, 2023. The decision comes as DCG negotiates with creditors of its bankrupt lending business. The company cited the prolonged crypto winter and the challenging regulatory environment for digital assets in the US as the reasons for the closure.

Implications for the Cryptocurrency Market

The closure of TradeBlock is expected to have significant implications for the cryptocurrency market, particularly for institutional investors who rely on the platform for trading and pricing services. CoinDesk Inc., a cryptocurrency media and events company also controlled by DCG, acquired TradeBlock in 2020. As part of the acquisition, the indexing business was folded into CoinDesk’s own operations, while the remaining operations were spun out as the TradeBlock trading platform.

Dcg Announces Closure Of Tradeblock Due To Challenging Regulatory Environment In The Us

DCG spokesperson stated, “Due to the state of the broader economy and prolonged crypto winter, along with the challenging regulatory environment for digital assets in the US, we made the decision to sunset the institutional trading platform side of the business.” However, the decision to shut down TradeBlock was not unexpected as DCG had already signaled its intention to focus on core businesses and streamline its offerings to better serve its clients.

About TradeBlock

TradeBlock was founded in 2013 as a digital currency trading platform that catered to institutional investors. The platform allowed users to execute trades, access market data and analytics, and manage their digital asset portfolios. TradeBlock also provided a range of services including a cryptocurrency index, order management system, and a suite of APIs for developers.

The acquisition of TradeBlock by DCG provided several benefits for the company, including access to a highly skilled team of developers and industry experts. However, the decision has been made to shut down the trading arm of the DCG conglomerate, and TradeBlock will cease operations on May 31st, 2023.

BTC’s sideways price action on the 1-day chart. Source: BTCUSDT on TradingView.com

Featured image from Unsplash, chart from TradingView.com

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