• Belgian crypto lender Bit4You has suspended its activities after one of its main custodians, CoinLoan, was declared insolvent in Estonia.
• The suspension of operations came after the platform discovered that CoinLoan no longer had the required registration to operate as a virtual currency provider in Estonia.
• Bit4You says it is taking steps to try and understand the situation and believes that cryptocurrencies held by CoinLoan on behalf of its customers can still be recovered.
Bit4You Suspends Activities
Belgian crypto lender Bit4You has announced its suspending its activities. The suspension of operations came after the platform discovered that one of its main crypto asset custodian, CoinLoan, no longer had the required registration to operate as a virtual currency provider in Estonia. An Estonian court declared CoinLoan insolvent on Monday, 24 April, 2023.
Steps Being Taken By Bit4You
Bit4You says it is taking steps to try and understand the situation and believes that cryptocurrencies held by CoinLoan on behalf of its customers can still be recovered. The platform has urged customers not to panic and have stated they are working towards ensuring all customer funds are safe and secure.
Impact On Customers
The impact this incident will have on customers is yet unknown as investigations into the matter are ongoing. However, Bit4You insists it will do everything possible to ensure customer funds are safeguarded from any potential losses incurred due to this incident.
Regulatory Requirements For Crypto Lenders
This incident serves as an important reminder for crypto lenders about how important it is for them to abide by regulatory requirements when operating such platforms. No doubt this experience will help other players within the space become more aware about how vital it is for them remain compliant with local laws in order for their business model to remain viable in the long run.
In conclusion, while this incident may have been a setback for Bit4you, we hope they find a way forward soon so they can continue providing their services without fear or uncertainty going forward