Netagio, a growing Bitcoin exchange that received a lot of positive press in recent months, has decided to close its exchange service. Instead, the company will “restructure” its business model, hoping to transition into a wealth protection service.
This new service will apparently go beyond Bitcoin protection and build a business of general wealth protection, offering global vault storage options for “retail and institutional investors, high net worth individuals and family offices.”
“Drawing on Netagio’s heritage as a trusted storage provider for both gold and Bitcoin and having served as a custodian for Bitcoin funds, Netagio will start offering secure cash storage options for firms and individuals wishing to diversify their savings risk. 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.“
Netagio cites stagnating setbacks as their reasoning behind leaving the Bitcoin industry, saying that declining trading volume, price, and regulatory uncertainty has stunted the growth of businesses in the Bitcoin economy. The company specifically mentioned the poor Bitcoin atmosphere in the UK, Netagio’s base country, as a reason for why they felt participating in Bitcoin was no longer viable. According to Netagio, a lack of regulatory clarity has led to UK banks cutting off partnerships with Bitcoin companies, which has reduced the UK’s share in the Bitcoin market to a “stagnating 0.25%.”
Customers have 30-days to withdraw all funds held in Netagio wallets. After 30-days, the exchange will fully shut down, and Netagio will no longer be a Bitcoin business.