BitLendingClub to Shut Down: Claims Closure Is Caused By Regulatory Pressure

BitLendingClub, a bitcoin peer-to-peer lending platform, announced on Thursday it was shutting down all of its services. The website claimed the closure was due to regulatory pressure.

BitLendingClub logoThe lending portal’s team released a letter to customers, stating:

“We’ve worked extremely hard to build a platform and a community which is uniquely positioned to provide the Bitcoin ecosystem with a greatly needed service. However, over the last year or so, the regulatory pressures has been increasing to the point that it is no longer feasible to maintain the operation of the platform. We are regretfully announcing that we will have to begint terminating the services effective immediately. Of course, we will maintain some minimal functionality in order to allow our existing users to repay their loans and withdraw their funds.”

BitLendingClub’s team shared they are planning to restrict the functionality of the website to either repaying of a loan, deposition to repay or withdrawing funds. They noted there would be no new registrations, loan requests, new users verifications, investments or any other service other than just repaying. They are expecting that service restrictions will begin sometime next week, without knowing a specific date, but will send an email to users when the changes occur.

The team also revealed the platform will remain operation with limited functionality for 30 years after all loans are either repaid or written off. The expected end of services will be August 2017, but it may be sooner or later. Users will be able to withdraw funds up to 30 days after the last loan is repaid or marked as written off. They are planning to terminate the platform 30 days after the last loan is repaid or written off. It is recommended that all users withdraw their funds immediately.

BitLendingClub’s team then added:

“Again, we’re extremely sad to be delivering this news, but that’s the reality of operating a business in the Bitcoin ecosystem. There are regulatory pressures, which make business extremely difficult and we have always done everything possible to be compliant with regulators. Given that we’ve reached the point where it is no longer feasible to run the platform and be compliant, we have decided to terminate the platform.”



Sponsored Links by DQ Promote