Crypto Exchange Dasset in Liquidation: Customer Funds Locked

  • Auckland-based Dasset crypto exchange enters voluntary liquidation, leaving customers unable to access their funds.
  • CEO cites loss of banking provider as a key setback, triggering the decision amid declining asset values.
  • Grant Thornton appointed as liquidator, focusing on securing remaining assets; New Zealand’s crypto regulations unchanged.

In a shocking turn of events, Dasset, a prominent cryptocurrency exchange headquartered in Auckland, New Zealand, has begun the process of voluntary liquidation, leaving its customers unable to access their funds. The situation has sparked concerns about the stability and regulatory framework of the cryptocurrency industry in the country.

For months, customers of Dasset have been grappling with unsuccessful attempts to withdraw their funds. As reported by The Herald, a local media outlet, the exchange’s platform has been marred by inefficiencies, with numerous customers left in a state of uncertainty and frustration.

Banking Provider Woes and CEO’s Explanation

The underlying cause of Dasset’s downfall appears to stem from its inability to secure a banking provider following the discontinuation of services by its previous banking partner in January 2023. Stephen Macaskill, CEO of Dasset, revealed that the lack of a reliable banking partner severely hindered the exchange’s operations, rendering it incapable of processing withdrawal requests or maintaining regular trading activities.

In response to the crisis, Dasset’s management took the unprecedented step of initiating voluntary liquidation. The move was motivated by the stark decline in asset values and trading volumes, which had a substantial negative impact on the exchange’s profitability. By opting for liquidation, the company aimed to safeguard the interests of all stakeholders involved.

Grant Thornton Steps In as Liquidator

The once-vibrant Dasset website now leads to an announcement by law firm Grant Thornton, signaling its appointment as the exchange’s liquidator. The announcement provides insights into the circumstances that led to Dasset’s unfortunate demise, citing the detrimental effects of dwindling asset values and trading activities. Grant Thornton has pledged to engage with both customers and suppliers in the coming days, focusing on securing and preserving any remaining assets.

The situation at Dasset highlights the broader implications for the cryptocurrency industry in New Zealand. Ian Woolford, the Reserve Bank of New Zealand’s director of money and cash, reiterated the country’s current stance on cryptocurrency regulation in June 2023. Despite the unfolding crisis, New Zealand maintains its position that a distinct regulatory approach to cryptocurrencies is unnecessary. Digital assets continue to be treated as property, regulated through existing financial, anti-money laundering, and tax guidelines.

As the situation at Dasset unfolds, industry observers are closely watching for any potential regulatory changes or shifts in the cryptocurrency landscape in New Zealand. The plight of the exchange’s customers serves as a stark reminder of the risks and challenges inherent in the rapidly evolving digital asset sector. With the spotlight on Dasset’s liquidation, the future trajectory of cryptocurrency regulations in New Zealand remains uncertain.

Key Highlights
– Dasset, a prominent cryptocurrency exchange in Auckland, New Zealand, has initiated voluntary liquidation.
– Customers have faced difficulties withdrawing their funds, highlighting operational challenges.
– Lack of a banking provider since January 2023 led to the exchange’s downfall, according to CEO Stephen Macaskill.
– Grant Thornton has been appointed as the liquidator, focusing on safeguarding and preserving remaining assets.
– New Zealand’s cryptocurrency regulation remains unchanged, treating digital assets as property under existing guidelines.
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