Digital assets financial services company EQONEX Limited (NASDAQ:EQOS) today announced that it is taking decisive action to streamline its operations and focus resources primarily on the businesses that offer the most potential for revenue growth and long-term financial sustainability: Asset Management and Custody.

The company will proactively exit the crowded crypto exchange space by closing the Exchange.

Closing the Exchange is set to improve the company’s financial position by materially reducing the high-cost structure associated with operating the Exchange, and free up resources to drive growth in the segments where it has significant competitive strengths.

EQONEX explains that the Exchange was launched during a period of rapid growth and competition within the crypto industry, and the market is now comprised of close to 300 spot exchanges, many of which share comparable features. Intense market competition and low margins, combined with the significant technological load required to ensure optimal performance has made running a profitable exchange increasingly challenging, especially in the current environment where crypto exchange volumes have fallen.

EQONEX’s Asset Management business encompasses Investment Products and Bletchley Park, a fund of crypto hedge funds. The Investment Products business recently received approval from Germany’s Federal Financial Supervisory Authority (BaFin) for the issuance of an exchange-traded products, which resulted in the launch of the EQONEX Bitcoin Exchange-Traded Note (ETN) on the Deutsche Börse XETRA Exchange in July 2022.

In addition, EQONEX will be launching a Structured Products business in the near future that will offer professional investors and institutions exposure to bespoke crypto investments. The Company also recently announced several high-caliber, senior appointments to the Asset Management team to drive growth in Asia and Europe.

Digivault, the group’s digital asset custody business, is registered with the Financial Conduct Authority in the United Kingdom.

EQONEX’s principal place of business will move from Hong Kong to the United Kingdom given Asset Management and Custody operations are predominantly UK-based, together with the majority of the Executive Management team.

The Exchange will close for trading at 08.00 AM UTC on 22 August 2022. Clients should aim to close out their derivative trading positions during this seven-day window.

Customers will then have between 15 August and 08.00AM UTC 14 September (30 days from this announcement) to withdraw their assets into another wallet. Withdrawal fees will be waived.

The EQO token, being an exchange-only token that cannot be withdrawn, will cease trading with immediate effect. EQONEX will communicate with holders directly regarding their EQO balance.