BitNZ, a former leading Bitcoin exchange in New Zealand, has announced its upcoming closure. The shutdown comes following denial on the part of banks to continue servicing the platform.
BitNZ is going to suspend operations on April 15, 2017. Its closure is indicative of the regulatory and scalability challenges faced by a number of cryptocurrency businesses these days.
This is not the first time the digital currency exchange has been through difficult times since its inception in 2011. Last year, the banking sector prevented the platform from accepting fiat deposits but ultimately agreement was reached to overcome the gridlock.
Venezuelan bitcoin exchange SurBitcoin has recently closed down due to identical reasons following the refusal of its partner Banesco Bank to continue banking support.
Essentially, the problem boils down to the reliance of Bitcoin exchanges on traditional banking services. Once cryptocurrency platforms become autonomous, they will be able to sustain their businesses better.