Crypto firm Genesis is set to wind down spot and derivatives trading done through its British Virgin Islands-based affiliate — meaning it will no longer offer such services across any business units.
Genesis, a subsidiary of Digital Currency Group, has historically offered trading services via GGC International Limited (GCCI).
GGCI, which is owned by Genesis Bermuda Holdco Limited, “carries out spot trading activity and enters into derivatives referencing digital assets as a principal,” according to Genesis Trading’s website.
The company will stop offering such trading through GCCI, effective immediately, according to a Thursday memo to clients obtained by Blockworks. It is also set to stop providing spot trading done through the subsidiary on Sept. 21.
Open derivatives positions with GGCI will be honored through expiry, the memo states.
A Genesis spokesperson confirmed the memo’s contents in an email to Blockworks.
“This decision was made voluntarily and for business reasons,” the representative said. “With this termination of services from GGCI, Genesis no longer offers trading services through any of its business entities.”
The move comes about a week after US-based Genesis Global Trading said it would stop its crypto spot trading operations this month — a decision also done “voluntarily and for business reasons,” according to a spokesperson.
The firm noted at the time that spot and derivatives trading through GGC International Limited would still be “operational.”
“With spot market liquidity suffering and spot order book depth chronically flagging, it has become increasingly apparent that a significant portion of the future growth of crypto volumes will be in derivatives,” a second quarter report by Genesis stated.
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