Colbitex, Columbia’s first bitcoin exchange that launched its platform in testnet mode in June, has announced in its social media platform stating that it was forced to stop all bitcoin exchange operations following a complaint by Colombian authorities.
The company on Wednesday 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 https://colbitex.freshdesk.com/ Withdrawals will be processed immediately,” the post read (loosely translated).
Colbitex in June, released its platform in testnet mode in an aim to offer Colombian citizens a simple and efficient platform to exchange Bitcoin to Columbian pesos. The startup wanted to develop a robust bitcoin exchange in the region to familiarize locals with the digital currency, as well as to spread awareness about the benefits of using bitcoin to settle both international and local transactions.
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, newsbtc.com reported.
“Bitcoin is a non-backed asset, it has not been recognized as a legal currency in Colombia. None of the exchanges or transactional services related to bitcoin are properly regulated by Colombian laws,” the memo stated.
Features of Colbitex include an open order book, charts, market and limit orders, and more.