Cryptocurrency enthusiasts will be familiar with the BitLendingClub name, a platform that offers loans in the form of Bitcoin. For investors, this is an opportunity to earn a profit by loaning funds, whereas others can raise the capital they need for their ventures. But the platform is forced to shut down due to regulatory pressure, which is not good news.
Curtain Call Looms For BitLendingClub Users
The BitLendingClub platform has been around for quite some time and served many customers throughout the years. Lending services in the cryptocurrency ecosystem are hard to come by, as very few companies offer a reliable service. Rather strange, as there seems to be a dire need for Bitcoin lending services right now.
Unfortunately for BitLendingClub and its users, it looks like the venture will be coming to an end very soon. The company sent out an email to its user base yesterday, indicating the “regulatory pressures have been increasing”. In fact, the team deems it is no longer feasible to operate the platform moving forward. Nearly all services offered by the platform will be terminated effectively immediately.
To put this news into perspective, users will still be able to pay back their BitLendingClub loans. Others will have a limited time window to withdraw any remaining balances. All other website functionality has been restricted as of right now, including the depositing of new funds. Additionally, user registration, loan requests, account verification, and new investments are no longer possible.
For the time being, BitLendingClub users will have thirty days to remove all funds left on the platform and repay outstanding loans. Unfortunately for lenders, it is equally possible outstanding debt will not be repaid now that the company is shutting down. That is always the risk when dealing with third-party service providers, as there is no guarantee they will remain in business over time.
The proper termination of BitLendingCLub will occur thirty days after the final loan is repaid or marked as written off. Right now, the team estimates this to take place in August of 2017, albeit that date may change over time. It is unfortunate to see this company go, as they offer a service the Bitcoin ecosystem could use to push global cryptocurrency adoption.
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