It seems that yet another cryptocurrency exchange has shut down, as the security of the digital currency industry was once again put in question. According to reports circulating, Paybase.com has stopped withdrawals for seven days and the owners refuse to answer any questions as of now.
The company’s website is still up though and it accepts sign ups using email to create a cryptocurrency wallet. However, some clients claim that Paybase.com’s support team is no longer answering on the forum and that owner Josh Garza has allegedly closed some threads.
Cryptocurrency Exchange Hacking?
Prior to this, smaller cryptocurrency exchange companies have also been hacked or shut down due to security threats. Even the largest bitcoin exchange Mt. Gox had not been immune to suspended trading services, as the lack of regulation or oversight in the industry leaves bitcoin exchange firms vulnerable to theft or hacking.
Last year, Mt. Gox shut down its bitcoin exchange operations and lost 850,000 bitcoins belonging to its clients. Some say that this sparked the downturn in bitcoin prices for most of the year and throughout this year so far.
Even with the promise of anonymity in using bitcoin in transactions and the likelihood of seeing higher prices as the supply of bitcoins fall, these security problems are still preventing the mainstream acceptance of bitcoin. However, many still oppose increased regulation in the industry, as this could force transparency and expose several transactions.
Paybase.com offers paycoins as its main cryptocurrency, explaining that it is a global currency that allows you to send money to anyone, anywhere, anytime. According to the Paycoin.com page, this removes the need for third parties, which are typically banks or financial institutions, and leaves full control to the customer.
Speculations that the company is running a scam have led Paybase.com to be removed from a list of sponsors in The North American Bitcoin Conference earlier this year.