Genesis Global Trading, a prominent cryptocurrency brokerage and trading firm, has announced its decision to discontinue all digital asset trading services.
The company cited “business reasons” as the primary factor behind this significant move. Starting from September 21, 2023, Genesis Global Trading will cease its operations across the United States.
This decision also extends to GGC International Limited (GGCI), a subsidiary of Genesis Global Trading based in the British Virgin Islands.
GGCI, owned by Genesis Bermuda Holdco Limited, has been responsible for spot trading activities and derivatives referencing digital assets.
Genesis Global Trading is a leading cryptocurrency brokerage and trading firm operating in the digital asset market.
It is a subsidiary of Digital Currency Group (DCG), one of the largest and most influential companies in the cryptocurrency and blockchain industry.
The company specializes in providing institutional investors and high-net-worth individuals with access to cryptocurrency trading and related services.
This move comes shortly after Genesis Global Trading, based in the United States, announced its voluntary cessation of crypto spot trading, also for business reasons.
Market shifting toward derivatives
In a second-quarter report, Genesis noted that “a significant portion of the future growth of crypto volumes will be in derivatives,” reflecting the changing landscape of the cryptocurrency market.
This development adds to the ongoing complexity surrounding various entities affiliated with Digital Currency Group (DCG), which is also the parent company of Genesis.
It is worth noting that DCG had reached an “agreement in principle” with Genesis to allow creditors to recover the majority of their funds.
However, Genesis’s lenders have expressed dissatisfaction with the proposed deal, given the substantial debts owed to the firm’s top 50 creditors, totaling approximately $3.5 billion.
The evolving legal and regulatory landscape, along with the bankruptcy proceedings involving DCG subsidiaries and other crypto firms, continues to be a prominent topic in the cryptocurrency space, further shaping the future of the industry.
