Rotterdam-based LiteBit, a cryptocurrency trading platform, on Tuesday, May 23, announced its decision to cease all operations due to market developments.
Consequently, the company has reached an agreement with Bitvavo, the largest cryptocurrency exchange in the Netherlands, to transfer clients’ funds to their platform. The company is registered as a digital currency exchange at the Central Bank of the Netherlands (DNB).
The company says it will actively inform and fully support its clients throughout the transfer process, ensuring a smooth transition.
Further, the organisation will gradually wind down its operations over the coming months, and LiteBit employees will receive support in finding their next career steps.
LiteBit shuts down: The reason
According to LiteBit, the company is facing obstacles to its long-term sustainability, primarily due to increased regulatory costs, anticipated fee reductions resulting from heightened competition, and the absence of a global level playing field.
After thorough deliberation and careful consideration of all options, LiteBit concluded that ceasing operations and collaborating with Bitvavo was the most appropriate course of action.
Bitvavo offers an online exchange platform that can easily buy, sell and save digital currencies safely.
LiteBit says it has informed the relevant regulators about the intended collaboration, and the details will be shared with clients once the service is fully implemented, expected within the next few weeks.
Arthur van Lier, COO of LiteBit says, “LiteBit continues to ensure all client funds are available to clients, as the security of client funds has always been our top priority. We are fully dedicated to a smooth and fast transfer of funds for our clients.”
LiteBit clients will receive active guidance and the choice to either create a Bitvavo account themselves and undergo a guided fund transfer or sell and withdraw their funds directly from the LiteBit platform.
“All information and further instructions for clients can be found on the website, the LiteBit App, or via Chatbot. LiteBit’s support team is on standby for any questions that clients may have,” says the company.
In Austria and France, clients will have the option to sell or withdraw their funds or to be offered a transfer of their funds to Bitpanda, a digital asset platform based in Austria.
All employees will be compensated and fully supported, both in servicing clients during the wind-down period and in their situation.
Corrien Verschuure, CFO of LiteBit says, “We will ensure that all our employees will be well equipped for their next steps. Not only financially, but also via outplacement support.”
Arthur van Lier concludes, “We have always had a good relationship with all relevant regulators and will make sure to wind down our business in a transparent and compliant way.”
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