Benzinga - 24 Exchange, a trading platform that secured $14 million in funding in late 2021, which included support from Point72 Ventures led by Steve Cohen, has decided to discontinue its spot cryptocurrency product.
This comes as global regulators intensify their scrutiny of cryptocurrencies.
The Bermuda-based exchange, which was founded in 2018 and commenced operations in 2019, initially enjoyed robust support for its crypto trading product.
However, the company’s Chief Executive Officer Dmitri Galinov told Bloomberg that there was a decline in interest and demand following the collapse of FTX (CRYPTO: FTT) and crypto-affiliated entities such as Signature Bank (OTC: SBNY) and Silvergate Capital Corp. (NYSE: SI).
While 24 Exchange has made the decision to discontinue its spot crypto product, it won't be doing the same for another key offering. Galinov stated, "The trading venue will still offer its crypto non-deliverable forward product to clients seeking to hedge their digital-asset exposure."
Also Read: Kaito Raises Funds, Boasts $87M Valuation As On-Chain Crypto Search Engine Debuts
Prior to this, 24 Exchange, which primarily caters to banking and other institutional clients, had sought approval from the U.S. Securities and Exchange Commission (SEC) to offer round-the-clock trading in equities.
The exchange had intended to enable customers to trade equities in increments as small as one one-thousandth of a share.
“Anyone who wants to trade crypto 24/7 would also like to trade Apple or Microsoft 24/7.” However, the company’s plans met with delays, and according to Galinov, they "ran out of time."
24 Exchange now aims to resubmit its application to the SEC for 24/7 equities trading by the end of summer.
Read Next: BitGo Calls Off Prime Trust Acquisition In The Crypto Custody Space
Join Benzinga's Future of Crypto in NYC on Nov. 14, 2023 to stay updated on trends like AI, regulations, SEC actions & institutional adoption in the crypto space. Secure early bird discounted tickets now!
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.