Coinsuper Reportedly Stops Customer Withdrawals
- Dozens of customers have been unable to withdraw their money and tokens from the exchange since late November, messages from telegram suggest.
- At least seven users have filed reports with the police, which is currently investigating one case connected to the exchange.
Hong Kong city view from The Peak at twilight.
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Hong Kong-based cryptocurrency exchange Coinsuper has allegedly stopped all withdrawals from the platform since late November, Bloomberg reported on 7 January.
The publication cited messages from the exchange’s official Telegram channel, according to which dozens of users have been unable to withdraw their money and tokens from the platform since late November, and at least seven have filed a report with the police. Backed by Pantera Capital, Coinsuper was founded in in November 2017 by a former senior executive of UBS Group AG. Bloomberg wrote:
“Hong Kong police spokesperson said by email that it’s investigating one case where a person who bought cryptocurrency “via an investment company” was unable to withdraw her funds since December.”
While the exchange has remained operational — registering roughly $14 million in daily trading volume — contact with its team seems to be impossible. The administrator of Coinsuper’s Telegram group had disappeared around November, and had only recently resurfaced to ask for users email addresses. Customers who responded told Bloomberg there has been no follow-up ever since.
The exchange’s management has also stopped responding to queries via email and WeChat around six to eight months ago, according to a partner from one of the exchange’s VC backers, who said the firm had already written off its roughly $1 million investment.
- The decision has placed Hong Kong in line with other common law jurisdictions that had previously ruled crypto had the same attributes as property.
- This will give liquidators in Hong Kong greater clarity on how to handle crypto held by companies that are winding down.
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- Cryptocurrency exchange Huobi revealed that it is working on acquiring a crypto trading license in Hong Kong, and on opening a new trading platform in the city.
- The expansion was motivated by the Securities and Futures Commission’s (SFC) upcoming licensing regime, which could also allow retail investors to trade crypto.
- Hong Kong’s SFC has called for public feedback on its newly proposed licensing regime for cryptocurrency exchanges, which is set to take effect in June 2023.
- A key point of the public consultation is whether to allow licensed crypto exchanges to offers services to retail investors, and what protection measures should be put in place.