In light of the significant worsening in the macroeconomic factors, Blockchain.com concluded that it was necessary to terminate BACM, which catered to institutional players.
Some crypto companies have been feeling the effects of market instability and liquidity problems.
The prominent cryptocurrency business Blockchain.com has decided to close down its crypto wealth management arm in the United Kingdom.
In the document sent to Companies House, Blockchain.com is said to have requested that the asset management subsidiary be removed from the UK registry and that the firm be dissolved further.
In conjunction with Altis partners, Blockchain.com introduced its crypto asset management arm in April 2018, naming it Blockchain.com Asset Management, or BCAM.
The objective was to entice institutional players who provide services tailored to the target audience’s requirements.
However, not long after the listing, the cryptocurrency industry went through a rather hard spell, marked by the failure of major cryptocurrency lenders such as Celsius Networks, Voyager Digital, and others.
The cryptocurrency exchange FTX filed for bankruptcy later that year, further exacerbating the market’s bearish mood.
A spokeswoman for blockchain.com provided the following response (1) when asked by Bloomberg about the latest development:
“Blockchain.com Asset Management began operations in April 2022, just a few short months before the general state of the economy began to worsen dramatically.
A year has almost passed since the beginning of the crypto winter, and as a result, our company has concluded that it is no longer profitable to continue operating this institutional offering.
Blockchain.com, like other participants in the cryptocurrency market, has been feeling the heat of the recent sell-off in the cryptocurrency market.
Last year, in order to mitigate the impact of the company’s losses in the cryptocurrency market, Blockchain.com was forced to let go of 25 percent of its workforce. Almost forty-four percent of the workers that were affected were from Argentina.
Whereas 26% of them were from the United States, 16% were from the United Kingdom, and the remaining 4% were dispersed throughout several other countries.
Streamlining Business Procedures at Blockchain.com
Blockchain.com, a cryptocurrency-focused firm, was established in 2011, making it over a decade old. After that, it did a fundraising campaign, which increased the company’s valuation from $5.2 billion to $14 billion. Shortly after that, it created a new subsidiary.
Blockchain.com managed to achieve a number of important milestones despite the crypto winter of 2022. During the course of the previous year, the cryptocurrency firm was successful in obtaining registration in a number of nations all over the world.
Furthermore, in June of 2022, Blockchain.com also signed into a custody order with Anchorage Bank.
Later, in October of that same year, the cryptocurrency firm collaborated with Visa Inc. to launch a cryptocurrency credit card in the United States.
The most recent turn of events concerning Blockchain.com is happening when the cryptocurrency market is experiencing significant upheaval as a direct result of the crisis at Silvergate Bank.