CEX.IO has just announced a halt to all new user registrations on its platform with immediate effect.
The cryptocurrency exchange, which was first established in 2013, has cited “overwhelming demand” and a long backlog of non-processed withdrawal requests as the primary reasons for its decision.
Registration Requests “Nine Times Higher Than 2017”
In a circular distributed by mail to its existing clients but not published on its website, the outfit noted that registrations for the month of November were nine times higher than for the November of the previous year.
With 300,000 registrations occurring for the month of December alone, its support staff have been unable to cope with the demand. The exchange has a long history of under-resourcing with some clients having previously complained of exorbitant fees and painfully slow turn-around times.
Trustpilot, a UK-based website that seeks to promote transparency in business behaviour, has documented numerous cases of both KYC and non-KYC cleared clients complaining of being unable to withdraw their funds, with follow up attempts to contact the support team receiving no response.
“They cannot give an estimate of how much time the process will take,” one client complained on Trustpilot.
CEX.IO, one of the smaller number of exchanges which offers the ability to purchase cryptocurrencies through direct fiat payment, joins a long list of exchanges whose reputations have been sullied recently by an inability to cope with large demand and/or provide adequate security during the recent upsurge in interest in cryptocurrencies and tokens.
Earlier this week, popular decentralised exchange Ether Delta had to temporarily shut down its operation after a hacker had rerouted its DNS entry to an imitation website. The exchange is now up and running again.