Crypto exchange MyCryptoWallet falls, appoints liquidators. Due to a lack of regulatory control, it has been decided to take down an Australian cryptocurrency exchange. Which may result in investors losing all they have invested.
On Friday, December 3, following the company’s administration, Jaryd Tyson Koenigsmann. Also the chief executive of Melbourne-based cryptocurrency exchange MyCryptoWallet. Engaged liquidators SV Partners, according to paperwork filed with the Australian Securities and Investments Commission.
According to previous statements made by the organization, the company declared in 2017. That it had signed up 20,000 new consumers in the previous year.
Through the exchange’s trading interface, customers can purchase and sell several cryptocurrencies. Including bitcoin, ethereum, ripple (XRP), and litecoin, according to their preferences.
The Australian Securities and Investments Commission (ASIC) announced in April. That it will be conducting an investigation into a variety of claims leveled against MyCryptoWallet.
The suspension of the company’s accounts in 2019 was the consequence of a disagreement. With National Australia Bank.
According to the latest estimates, the first creditors’ report from SV Partners. Will be released on September 17th. A potential bidder for the corporation’s “technical infrastructure,” which the administrators. Refer to as “technology infrastructure,” is also on the lookout. For interested parties to purchase the infrastructure.
Following the collapse of cryptocurrency exchange Coinbase. The cryptocurrency exchange MyCryptoWallet has gone down for the second time. In less than two months. The bankruptcy of Blockchain Global Limited, which occurred in October of this year. Resulted in investors being saddled with a $21 million debt.
Warning for investors
In contrast to banks, cryptocurrency exchanges are not backed. By the federal government.
“Many people, I believe, are not aware of the fact that the cryptocurrency. Kept on the exchange is not theirs in the same way. That their bank account or their credit card is. They don’t have direct control over it. But they can influence it indirectly “Aaron Lane. Director of the RMIT Blockchain Innovation Hub, shared his thoughts.
“They do not have legal possession of those assets. It is the exchange that is in charge of keeping track of it.”
In response to a Senate inquiry, recommendations were made for reforms to taxation. Licensing, and regulatory systems in order to facilitate the establishment of digital. And crypto-asset firms in Australia.
Nick Abrahams, the worldwide leader of Norton Rose Fulbright’s digital transformation practice. Stated that the government must move quickly to regulate exchanges. And protect Australians’ personal information.
According to Mr Abrahams, “since the digital currency exchange industry. It is mainly unregulated, it is difficult for users to judge. Whether exchanges are reputable.”
In his opinion, the only way to be confident that your cryptocurrency. Was secure was to remove it from an exchange and store it in a “cold wallet.” and Crypto Exchange MyCryptoWallet.
“A cold wallet is a small piece of hardware [that is not linked to the internet]. Such as a USB drive, that stores cryptocurrency keys and other information. Of course, the difficulty is that you may misplace your cold wallet. As well as the password that allows you to access your cold wallet. At any time “he explained.
“As cryptocurrency becomes more widely adopted and the sector matures. This transaction friction and risk will also eliminated.”