August 15, 2023 at 11:36 GMTModified date: August 15, 2023 at 11:39 GMT
August 15, 2023 at 11:36 GMT

New Zealand’s Dasset denies fund access and enters liquidation

With customers of New Zealand-headquartered exchange Dasset unable to withdraw funds, CEO Stephen Macaskill has confirmed the beginning of liquidation.

New Zealand’s Dasset denies fund access and enters liquidation

With customers of New Zealand-headquartered crypto exchange Dasset unable to withdraw their funds, the company’s CEO, Stephen Macaskill, has now confirmed the beginning of the firm’s liquidation.

Macaskill declared the reason behind the liquidation as Dasset’s failure to find a banking provider after its previous provider backed out in January 2023. However, people can still open a new account on Dasset even though the exchange is currently going through voluntary liquidation.

There were no signs of any announcement regarding the liquidation on the company’s official X (formerly Twitter) or Instagram accounts, other than on its official website. However, the page now directs to that of law firm Grant Thornton, who has taken upon the announcement of the liquidation.

The website states that David Ruscoe and Russell Moore from Grant Thornton New Zealand have been appointed liquidators of the digital exchange. According to Dasset’s management, the appointment of liquidators was in the best interests of all stakeholders.

There was a significant reduction in asset values and trading levels which impacted Dasset’s ability to trade profitably. The liquidators would now immediately focus on securing and protecting Dasset’s assets.

In the announcement, Moore further stated: “We understand users and creditors will be disappointed by the news that Dasset has gone into liquidation. The process of securing the assets is complex; there are third parties involved and nearly 100 different types of digital assets. We will work with management and third parties to resolve any issues as soon as possible, and we will update all stakeholders on progress as regularly as possible.”

In one of the FAQs listed on the page, it was also mentioned that at this stage, the company did not have any intentions to reopen trading on the exchange. Users have also been requested to not deposit any further coins on any of the wallet addresses previously used on Dasset.

All customers and suppliers will be contacted in the next few days by Grant Thornton. It also aims to publish an initial report which will be available on the New Zealand Companies Office website by next week.

While the Reserve Bank of New Zealand seeks to closely monitor cryptocurrencies and stablecoins, its director of money and cash, Ian Woolford, publicly stated back in June that the country still doesn’t need a regulatory approach to crypto.

As of now, the country’s current legislations treat digital assets as a form of property. It regulates these through non-crypto-specific financial, money laundering and tax guidelines.