Dasset Crypto Exchange Crumbles: The Ripple Effects of Regulatory Pressure

<p>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.</p><p>Dasset Crypto Exchange Confirms
Liquidation</p><p>According
to information published yesterday (Monday) by the New Zealand magazine The
Herald, the country-based <a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a> 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.</p><p>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.</p><p>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.</p><p>"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."</p><p>New Zealand's Central Bank
Ramps Up Crypto Monitoring</p><p>Although
the Reserve Bank of New Zealand (RBNZ) claims <a href="https://www.financemagnates.com/cryptocurrency/new-zealands-central-bank-does-not-want-crypto-regulations/" target="_blank" rel="follow">it has no intention</a> 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.</p><p>"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.</p><p>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.</p><p>On the
other hand, New Zealand's Financial Markets Authority (FMA) <a href="https://www.financemagnates.com/cryptocurrency/news/new-zealand-issues-cryptocurrency-warning/" target="_blank" rel="follow">has expressed
several concerns</a> about retail investments in the 'unstable and high-risk'
Bitcoin. At the same time, the largest banks Down Under are blocking <a href="https://www.financemagnates.com/terms/p/payments/">payments</a>
to <a href="https://www.financemagnates.com/cryptocurrency/australias-top-bank-halts-payments-to-selected-crypto-exchanges/" target="_blank" rel="follow">selected cryptocurrency exchanges</a>, citing security concerns. Among them are
the Commonwealth Bank (CBA) and Westpac.</p><p>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, <a href="https://www.financemagnates.com/cryptocurrency/binance-ceases-australian-dollar-trading-amid-struggles-with-banking-issues/" target="_blank" rel="follow">ceased </a>its service provision.</p>

This article was written by Damian Chmiel at www.financemagnates.com.