New Zealand cryptocurrency exchange Cryptopia halted withdrawals of NZDT after their bank pulled support for the growing exchange. Traders are now complaining of other coin withdrawal problems.
It wasn’t too long ago that Cryptopia started their venture into the world of cryptocurrency trading, and since its inception the exchange has had to temporarily halt withdrawals, deposits, trading and new user registration to handle major problems on their platform. The most recent problem is the most concerning yet, however, as it involves the lack of ability for the company to do business altogether.
In an article from Stuff.co.nz, it was revealed that Cryptopia has stopped accepting deposits into NZDT and customers who want to withdraw their funds will need to do so by February 9, unless another banking solution is found within that time.
In their news section of their website, Cryptopia shed more light on the issue by saying
Unfortunately, our current bank has notified us that they intend to close our NZDT account on 9 February. Due to this, we are announcing an immediate halt to NZDT deposits from COB today and we are asking all customers to cease sending NZD deposits to our NZDT account. We are focused on securing lasting and open relationships with bank providers so that this will not happen again in future. Whilst some exchanges choose to operate by opening bank accounts without being transparent (and running these until they get shut down), we believe this exposes us and our customers to greater risk and uncertainty.
The problem is that Cryptopia already did what they say they are trying not to do — run a risky operation that could get shut down. This is due to a lack of regulatory oversight in the cryptocurrency market of New Zealand, something that many people feel will be remedied this year. And with banks seeing the heavy losses in the cryptocurrency markets lately, it’s no wonder.
In the meantime, NZDT is not the only coin that is having trouble lately. Users have taken to social media to express their regret in using the exchange due to not being able to withdraw their funds. One user in the Cryptopia subreddit today said their Monero withdrawal had a faulty transaction id and never arrived in their wallet.
Withdrawal and deposit complaints have been mounting over the past several months, with one bitcointalk user saying
“The problem is when they advise of a 12 day window in responding to tickets, yet numerous people are over 3 weeks and still have not heard anything from their support. Not only do they not respond to most people. If you try to bring it up on their discord channel, you get banned.”
Currently, however, Cryptopia’s support asks for a 20 day window and it is unlikely that window will get any smaller with the rise in complaints and issues being opening in support tickets.
It is advisable to stay away from this exchange until they have proven to iron out these problems in the future.