Dragon Payments Ltd. a cryptocurrency exchange platform that is based in the United Kingdom is going into forced liquidation as per the latest regulation crypto segment that we have in our latest cryptocurrency news.
In a statement issued on its website, the company, that the company known in the past as London Block Exchange (LBX) announced the news of the Dragon Payments exchange forced liquidation. The decision comes after a winding-up order against the cryptocurrency exchange at the end of January of 2020. According to the announcement, officials of certain accounting firm David Rubin and Partners, which is based in London, will be responsible for overseeing the liquidation process. An excerpt from London Block Exchange announcement detailing the focus of the liquidators reads:
“The Joint Liquidators and their team are working toward resolving customers’ concerns, including the recovery of any sums owed, as a matter of priority. The Joint Liquidators’ team are contactable on the details below, and all queries or claims for monies owed should be addressed to them directly. We will endeavour to provide a further update as soon as possible.”
While there were no details given about the financial condition of the crypto exchange, the January 2020 winding up order directs to liquidity problems. Such orders usually happen in the United Kingdom when a company is unable to service its debts.
The forced liquidation potentially implies the curtain call for the over the counter (OTC) cryptocurrency exchange launched back in 2017. As was reported in a previous occasion by DC Forecasts, the company had wanted to launch a UK Pound Sterling backed stablecoin while at the same time maintaining strong compliance with regulatory provisions.
London Block Exchange is only the newest in an in a row of the United Kingdom and European cryptocurrency firms that are closing down as an effect of the fifth anti-money laundering directive (AMLD5) of the European Union. Few commentators are already noting the increased cost of compliance as directly consequential of the provisions in the new anti-money laundering paradigm. European cryptocurrency exchange companies like BottlePay, and other cryptocurrency businesses like ChopCoin (gaming service), and Simplecoin (mining pool) have also closed down in the past few months due to regulation crypto processes.
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