Colbitex forced to stop all bitcoin exchange operations

Investing | August 9, 2016 By:

Colbitex, Columbia’s first bitcoin exchange, has been forced to close after receiving complaints from the Colombian authorities.

The company posted on Facebook, requesting its customers to withdraw their funds from the platform. “Dear users, we are reviewing some processes and issues regulations in order to continue operating within the law. In the coming days, we will generate a statement extending this information. Please request the withdrawal of funds by mail to [email protected] or through a support ticket Withdrawals will be processed immediately,” the post read (loosely translated)

Colbitex was offering bitcoin exchange services with local currency (The Colombian Peso COP). The suspension comes a week after Colbitex entered formal operations and it’s a major setback for the local bitcoin ecosystem. The regulatory revision will establish a legal precedent in the government’s stance on cryptocurrencies.

The Superintendencia Financiera de Colombia (SFC), the Colombian government agency responsible for overseeing the financial regulation and market systems, earlier released a memo mentioning the dangers of using bitcoin.