Switzerland’s SIX Digital Exchange Postpones Launch of Crypto Services Amid Market Selloff (Report)
Due to the prevailing market conditions, SIX Swiss Exchange has postponed the launch of its crypto services division SIX Digital Exchange (SDX).
It is noteworthy that the stock exchange is the most important in Switzerland and the third largest of its kind in Europe. In September last year, the country’s regulator gave the green light to launch crypto-related services exclusively for regulated institutions. More specifically, SDX planned to provide custody and staking services to banks, hedge funds and other licensed financial firms.
SIX Swiss Exchange postpones introduction of crypto services
Now, the launch of the exchange’s crypto services has been postponed indefinitely due to “current market conditions,” according to The Wall Street Journal reported.
Over the past year, several of Switzerland’s traditional financial players have entered the cryptocurrency industry. Other than the SIX Swiss Exchange are Arab Bank Switzerland, BBVA Bank and the country’s largest online bank, Swissquote. The exchange expected to tap into the nation’s wealthy class to make cryptocurrencies a part of their portfolio.
Recently, however, billions of dollars were wiped out in the crypto market as its total market cap fell below $1 trillion. Bitcoin (BTC) has dipped below $25,000 and is trading at $22,000 at the time of writing as its market dominance dwindled.
MicroStrategy, the largest institutional holder of Bitcoin, now has over $1.26 billion in unrealized losses.
Tesla’s bitcoin stash is $320 million below its value at the time of purchase, while El Salvador’s shares are down about half. Many other crypto players have felt the dip, forcing them to take action to prevent further losses.
Market crisis affects many
For example, crypto lending behemoth Celsius had to suspend its withdrawal services due to a liquidity squeeze.
Meanwhile, crypto mining companies have either sold their mined stash or looked for alternative revenue streams in the debt and stock markets. Those taking such action include Riot Blockchain, Cathedra Bitcoin, and Marathon Digital.
On the other hand, CryptoCom and BlockFi have laid off hundreds citing the prevailing market crisis. Note here that while these companies reduced their headcount, Binance announced that it has 2,000 open positions.
Should Bitcoin and the rest of the crypto market continue the downtrend, many crypto holders risk further liquidations, which would lead to larger sell-offs.
Still, investors like hedge fund manager Stan Druckenmiller and MicroStrategy CEO Michael Saylor remain bullish on crypto. Saylor said Bitcoin is “unique” and “real,” which is why he’s sticking to his price prediction of $1 million for the digital asset.
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