Several financial magazines and newspapers have reported troubles with Coinsuper in Hong Kong. Coinsuper, a cryptocurrency exchange based in Hong Kong is in trouble and users are unable to withdraw their assets. Some users have lodged complaints with the police and an investigation is underway.
According to Bloomberg News, information obtained by the channel via Coinsuper’s official Telegram page indicates that the platform’s withdrawal option has been deactivated. Deactivation took place in November 2021. The same report also says that the group administrator stopped replying to messages since December. The administrator briefly resurfaced to request the email information of affected users.
Affected investors have gotten together to file a police complaint against the currency exchange after noting the non-availability of the withdrawal option. Hong Kong police have confirmed that they are handling complaints against an unnamed cryptocurrency exchange.
While the immediate cause of this problem has been hard to pinpoint, Bloomberg reports indicate that trading volumes on this platform have dropped significantly. Transaction volumes were below the daily norm. An unnamed VC company that invested over $1 million in Coinsuper disclosed that they have not been in contact with Coinsuper’s management for a while.
What this means for regulations related to crypto trading in Hong Kong is that it could become difficult for this nascent industry. As of now, it is easy for people to invest in this industry, especially in Hong Kong. But with such issues looming and long withdrawal times, crypto exchanges can and will be forced to register with regulatory authorities.