LINE’s cryptocurrency exchange is winding down operations, but not for reasons related to FTX’s collapse.

Bitfont, the cryptocurrency exchange by Japanese social media giant LINE, announced on Monday it’s closing down operations. In the announcement, the exchange cited challenges in the cryptocurrency industry, adding that the decision was made in the best interest of the LINE blockchain ecosystem.

LINE’s Crypto Exchange Closes Operations

“[…] Despite our efforts to overcome the challenges in this rapidly-evolving industry,

we have regretfully determined that we need to shut down BITFRONT in order to continue growing the LINE blockchain ecosystem and LINK token economy,” Bitfront said.

Effective today, Bitfront has stopped new user registrations, including its crypto-related credit card payments. Per the announcement, other exchange services, such as deposits and trading support, will gradually wind down towards the year-end. However, withdrawals will remain open until the end of March 2023.

All users’ personal information collected by the exchange will reportedly be deleted 40 days after withdrawal suspension. But some information might be retained for compliance with “legal requirements/fulfillment of reporting obligations / responding to disputes,” Bitfront stated in the announcement.

Bitfront Says Its Decision to Close is Not Related to FTX

Bitfront’s closure falls at the heels of the cryptocurrency market chaos and liquidity crunch stirred by the FTX’s fallout early in November. Several services and companies were pushed to the brink of collapse amid exposure to FTX and the market liquidity crisis. However, Bitfront said its decision to close operations is unrelated to these issues.

“This decision was made for the best interest of the LINE blockchain ecosystem and is unrelated to recent issues related to certain exchanges that have been accused of misconduct,” Bitfront added.

Formerly BITBOX, the Bitfront exchange served as the go-to trading platform for LINE’s crypto products, including the mainnet token of LINE’s blockchain, LINK, alongside other major cryptocurrencies. LINK token slightly dropped by over 2% to $26.30 during the time of writing.

（By Ibiam Wayas）