Dasset Crypto Exchange Crumbles: The Ripple Effects of Regulatory Pressure

Pressure on cryptocurrency firms does not seem to decrease. Their condition is not helped by the prolonged consolidation of major assets or the tightening regulatory screws by governmental financial institutions in the USA and Europe. Problems are also visible in Australia and New Zealand, where the Dasset exchange has gone into liquidation, and customers cannot retrieve their funds.

Dasset Crypto Exchange Confirms Liquidation

According to information published yesterday (Monday) by the New Zealand magazine The Herald, the country-based exchange has not responded to customer complaints about the inability to withdraw funds. The problem is believed to affect at least a few dozen people with up to $40,000 in assets on the platform. The most affected individual has unsuccessfully tried to recover her money for three months.

As it turns out, the company's CEO and director, Stephen Macaskill, is also elusive. However, The Herald managed to contact him, and from the text message he sent, it is clear that Dasset has gone into voluntary liquidation. He added that the exchange faced banking issues because local regulators in Australia and New Zealand are pressuring banks not to serve cryptocurrency firms.

The official company website was still operational yesterday and allowed account creation. But now, it redirects to the website of the law firm Grant Thornton, which has been appointed as Dasset's liquidators. Dasset's management pointed out that a significant decline in asset values and trading volumes affected the company's profitability. The decision to appoint liquidators was deemed in the best interest of all involved parties.

"We understand users and creditors will be disappointed by the news that Dasset has gone into liquidation," Russell Moore from Grant Thornton New Zealand commented. "The process of securing the assets is complex; there are third parties involved and nearly 100 different types of digital assets. We will work with management and third parties to resolve any issues as soon as possible, and we will update all stakeholders on progress as regularly as possible."

New Zealand's Central Bank Ramps Up Crypto Monitoring

Although the Reserve Bank of New Zealand (RBNZ) claims it has no intention of regulating the cryptocurrency market and that they don't fall under its jurisdiction, it is simultaneously expanding its oversight of this rapidly growing industry.

"We agree with the balance of submitters that a regulatory approach isn't needed right now, but increased vigilance is," Ian Woolford, the Director of Money and Cash at the RBNZ, commented.

Before finalizing its position, the central bank reviewed feedback from 50 stakeholder submissions related to cryptocurrency and decentralized finance. The crypto advocacy organization BlockchainNZ, the blockchain firm Ripple, and financial institutions such as Westpac and the Bank of New Zealand were among the stakeholders.

On the other hand, New Zealand's Financial Markets Authority (FMA) has expressed several concerns about retail investments in the 'unstable and high-risk' Bitcoin. At the same time, the largest banks Down Under are blocking payments to selected cryptocurrency exchanges, citing security concerns. Among them are the Commonwealth Bank (CBA) and Westpac.

In addition, Binance Australia, a local subsidiary of one of the world's biggest digital asset exchanges, recently announced that its customers would no longer have access to AUD deposits and withdrawals. This decision came after the payment company, Cuscal, ceased its service provision.