Singapore’s Fairdesk Exchange to Shut Down: Here’s Why

• Fairdesk announces full shutdown. 
• Withdrawals will be available until November 30. 
• Broader issues may drive further shutdowns. 

The crypto industry continues to face increasing regulatory challenges worldwide. Amid this pressure, many exchanges are caving. 

The Singapore-based Fairdesk exchange recently announced a permanent shutdown of its services by November 30. This is part of a growing trend of crypto exchanges shutting down due to compliance issues. 

Why Fairdesk Is Shutting Down

Crypto exchanges are increasingly caving under compliance pressure. On Thursday, October 10, the Singapore-based Fairdesk exchange announced a permanent shutdown by November 30, 2024. 

‼️Important Notice About The Closure Of Fairdesk Platform

Since the official launch of Fairdesk Cryptourrency Exchange in 2021, it has played a positive role in providing high-quality trading services to a large number of traders. However, with the development of the times and… pic.twitter.com/bujpJqwDjh

— Fairdesk | Hiring (@FairdeskGlobal) October 10, 2024

The exchange will close all active spot and future positions by October 17. After this, users will only have access to withdrawals. Users will have until November 30 to withdraw all their funds from the exchange. 

Since its launch in 2021, the exchange attracted significant traction in North America. However, it has since been unable to bear the increasing regulatory and compliance burdens. 

Regulatory Risks Increase Pressure on Exchanges

The shutting down of Fairdesk is part of a growing trend of exchanges collapsing under regulatory pressure. Regulators globally are tightening rules on exchanges, citing investor protection and anti-money laundering concerns. 

Amid this pressure, exchanges face growing compliance costs, which some can’t bear. This year, several changes shut down due to similar issues. For instance, in September, regulatory risks prompted Gemini to shut down in Canada. In August, Bybit shut down in France, citing European MiCA regulations. 

While these regulations help prevent money laundering and terror financing and protect investors, smaller exchanges are struggling to keep up. This will likely favor major players, leading to a consolidation in the exchange space. 

On the Flipside

• While Singapore is becoming a global hub for crypto, the country is implementing strict regulations. 
• Recently, Singapore banned Bitcoin ETFs, citing the speculative and risky nature of crypto. 

Why This Matters

Fairdesk’s shutting down reveals smaller exchanges’ issues with handling complex compliance requirements. 

Read more about Singapore’s probe into Worldcoin: 
Worldcoin Probe: Singapore Investigates Account Misuse

Read more about phishing scams: 
How to Stay Safe from Phishing Scams As DeFi User Loses $35M