Vogogo, a startup that deals with bitcoin services, will be closing its doors next month for all transactions that are in line with the cryptocurrency payment services. This is after the company has failed its operation in that specific field of processing. The announcement came in the middle of another controversy that the company is facing – the resignation of a number of executives.
The announcement came on July 5 and the decision will result to Vogogo closing downs the payments services of the company after it has done selling the risk management part of the business. These two are the major parts that keep the company operation ongoing. These are also the reason why a fund of $8.5 million was sent to the company in August of 2014 before the company has gone public in 2015.
The closure is known to everyone in the bitcoin community given its current size in the country. This is also added to the fact that Vogogo is considered in Canada as one of the leading service provider.
Coinbase, a bitcoin exchange that has been using the payments processor by Vogogo in order to access the Canadian market is said to be affected by the closing of the company. After the announcement from Vogogo, Coinbase has informed its customers that are based in Canada that it will no longer provide support after the month has ended.
There are other exchanges that are currently in operation in Canada including Kraken and QuadrigaX and many of them are saying that the shutting down of the firm has no effect on their operations.
Since April of this year, Vogogo has already been searching of new ventures as well as revenue following the public statement released by the company that their board of directors is looking for other options. During that time, the only thing the firm has confirmed is that they are cost-cutting which will result to the company downsizing.
Following the announcement to close, Coinbase which is the leading bitcoin exchange service in Canada has announced that it will no longer be able to provide Canadian customers with neither electronic funds nor Interac transfers.