Hacks, regulations, scams, lead 70+ exchange shut down in 2020 – CoinGeek

2020 has not been the best year for cryptocurrency exchanges, with over 70 shutting down in the first nine months of the year. Some of the exchanges have been exposed as frauds, some have been the unfortunate victims of cyber-attacks and others have just disappeared mysteriously.

According to Crypto Wisser, 76 exchanges have closed down since the beginning of 2020. Worryingly, according to the website’s Exchange Graveyard list, the biggest number of exchanges has ‘just disappeared’ without an explanation. They include TokenJar, Bitrush, QBTC, Nexybit, Coinfinit, ChaoEX, CoinMex, Coinrate, CoolCoin, BTCBear, Unichange and 3XBit.

The second biggest reason for the shutdowns was voluntary closure which claimed just over 30 exchanges. They included Bitunio, Blockonix, Bitqist, BHEX, OmniTrade and Stellar DEX.

HBUS is also listed under voluntary closure. The exchange was the U.S. affiliate of the global exchange giant Huobi Group. In December 2019, HBUS announced that it was ceasing operations “so that it can return in a more integrated and impactful fashion.” The shutdown came barely a month after Huobi froze U.S customer accounts, citing regulations as a challenge.

Indeed, regulations have played a big part in how the digital currency exchange industry has shaped up in 2020. As per the list, two exchanges were directly shut down by their respective governments—Nlexch in the Netherlands and Chilebit in Chile.

While only these two were shut down directly, most of those which shut down voluntarily did so