The tZERO Crypto exchange, majority owned by Overstock, will shut down on March 6, the company announced via Twitter on February 3. The company says it will continue to focus on its regulated securities products post-shutdown as the US Securities and Exchange Commission (SEC) and other regulators clarify the legal status of crypto assets.
Today, tZERO Crypto informed its customers that it will be ceasing operations on March 6, following an orderly withdrawal of assets by the customers, which continue to be held by the custodian. 1/7
— tZERO (@tZERO) February 3, 2023
tZERO is a New York-based financial technology company. Facilitates securities offerings for private companies that want to go public. In the crypto community, tZERO is best known for its offering of tokenized shares, or “digital securities,” which can potentially be traded on a ews blockchain.
The online retailer Overstock owns approximately 55% of tZERO, according to the company’s Aug. 26 press release.
In 2019, tZERO launched a traditional cryptocurrency exchange called “tZERO Crypto” that allowed users to buy, sell, and hold Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and other cryptocurrencies. But, in this recent announcement on February 3, the firm confirmed that it would be shutting down this exchange on March 6.
In the announcement, tZERO implied that unregulated cryptocurrency exchanges are on their way to obsolescence, stating: “We believe that many digital assets would be treated as securities and traded in a regulated ecosystem.” The ad further explained:
“While the regulatory environment around crypto assets is clarified by the SEC and other regulators (including in light of recent events), we will continue to focus on our unique regulated securities business, which we believe will be where the majority of cryptocurrency will be traded.” the values of digital assets.”
The company said the shutdown was set for March 6 to allow for an “orderly withdrawal of assets by clients, which remain in the custody of the custodian”. He did not clarify whether security tokens traded on the tZERO ATS exchange will also be affected by the tZERO Crypto shutdown. Cointelegraph reached out to tZERO ATS for clarification on this point, but was unable to get a response at press time.
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