Hotbit, a prominent cryptocurrency exchange, announced its decision to halt all operations by 04:00 UTC on May 22, urging users to withdraw their assets before June 21.
In a statement released on May 22, the China-based exchange revealed that the crypto industry’s recent crises and the subsequent collapse of centralized institutions had significantly impacted its operating conditions.
Hotbit cited various factors contributing to its deteriorating situation, including its investigations in August 2022, the collapse of FTX, and the dde-pegging of USD Coin (USDC).
These events, along with increased regulatory scrutiny and a series of cyber attacks and project defect exploitation, resulted in substantial losses for Hotbit’s operations.
Recognizing the shifting trends in the crypto industry, Hotbit expressed its belief that centralized exchanges (CEX) were becoming increasingly burdensome due to their complex and interconnected nature, making compliance and decentralization challenging.
The exchange stated that centralized entities must adapt to regulation or embrace decentralization to align with long-term industry trends.
Having served 5 million users for over five years and four months, Hotbit’s closure marks another significant development in the crypto landscape.
The exchange holds licenses from various regulatory bodies, including an Estonian MTR license, an American MSB license, an Australian AUSTRAC license, and a Canadian MSB license.
As the crypto industry faces mounting challenges and regulatory changes, Hotbit’s decision highlights the evolving landscape and the need for increased resilience and adaptability among market participants