UK-based startup Netagio, announced it had initiated a restructuring plan, which will consist in refocusing its core business on wealth storage. Netagio will close its BTC, GBP, USD and EUR exchange, and warns users to withdraw their funds before March 16.
Netagio, which suspended trading on all order books on February 16, is looking to launch a wealth storage venture in March 2015, with plans to start offering secure cash storage options for firms and individuals.
"Against a backdrop of bank bail-outs, caps on cash withdrawals and concerns surrounding bank malpractices regarding client fund segregation, Netagio will offer customers the opportunity to safeguard their funds in globally located money vaults," the company said in an announcement on February 16.
While Netagio believes it had succeeded in establishing a trusted Bitcoin marketplace for the UK and European market, this new corporate direction was put forward essentially due to the "stagnation in the industry and trading volumes," caused by what the company believes to be the "continuing regulatory uncertainty, the anticompetitive decision by banks to deny Bitcoin businesses a bank account and banking services, as well IT hacking challenges."
Commenting on his company's restructuring move, CEO Simon Hamblin, stated:
"We are immensely proud of our efforts and achievements to date while facing the reality of a stagnating market place in Europe, in an environment of regulatory and political uncertainty facing Bitcoin businesses.
As experienced Board representatives we recognize when industry winds blow in other directions and it is time to review and restructure."
Meanwhile, Netagio said it will voluntarily subject itself to external audits and continue to operate under rigorous AML/KYC requirements.
In late September 2014, Netagio confirmed its successful ISAE 3000 audit and became the first venture in the digital currency industry to achieve the distinction. Conducted earlier in 2014 by leading accounting and auditing firm BDO LLC, the distinction attested that Netagio is in compliance with standards set out by the International Auditing and Assurance Standards Board (IAASB).
Did you enjoy this article? You may also be interested in reading these ones:
- Netagio Partnership Secures European Banking Support, Ends UK Stalemate
- Netagio ISAE 3000 Audit Shows Bitcoin Gravitas in Finance Industry
- Bitcoin Could Help US Protect Against Rising Card Fraud