“As it uses existing rules, it’s going to be much less like a standalone framework,” Lightstone said. “A crypto firm will be treated like any normal traditional financial institution,” adding that “it will still be hard to get FCA authorization.”

For established banks and investment firms already operating under those rules, adapting to crypto may be relatively straightforward. For newer crypto businesses, however, the cost of building governance, capital and custody systems from scratch could prove considerably more burdensome.

That challenge is particularly evident in the FCA’s proposed client asset regime, applying the Clients Asset Sourcebook (CASS) framework, which would require firms to segregate customer crypto assets from company funds under trust arrangements while introducing crypto-specific operational safeguards around private keys and reconciliations.

“The CASS requirements are very onerous,” Lightstone said. “That could encourage those newcomers to merge [with], be acquired by, a traditional firm that’s already subject to CASS and has those controls in place.”

Banking adoption

The prospect of consolidation comes as banks themselves appear more willing to enter digital assets now that regulatory uncertainty is beginning to lift.

“As of today, there is less than 20% of all the banks in Europe [that] offer today any type of crypto services, so it’s heavily underserved,” said Simon Schneider, CEO of Sygnum Europe.

BitMart is shutting down its cryptocurrency exchange, with trading services scheduled to end on Aug. 26 and the company planning to complete operations by Jan. 31, 2027. In an announcement posted to its support site, the exchange said the decision follows an evaluation of its operating conditions, market environment, and future strategy, adding that the wind-down process will be orderly.

As part of the shutdown plan, BitMart has stopped taking new user registrations and deposits. Futures trading has moved to a reduce-only mode, while spot markets are no longer accepting new orders. The move places BitMart among a growing group of crypto venues that have signaled closures in recent months, including BitMEX and Dango.

Key takeaways

• BitMart will end trading services on Aug. 26 and expects to cease operations on Jan. 31, 2027, following an announced wind-down.
• The exchange has halted new registrations and deposits; futures are reduce-only and spot trading won’t accept new orders.
• BitMart’s token BMX fell sharply after the announcement amid user complaints about slower withdrawal processing.
• Arkham data indicates BitMart-attributed wallets held about $71 million in crypto assets on Sunday, down from roughly $102 million on July 6.
• BitMart said some withdrawals may require extra compliance and security checks, which could extend processing times.

Wind-down steps and what users can do

BitMart’s notice outlines a gradual shutdown rather than an immediate cutoff. It has already stopped onboarding: new user registrations and deposits are no longer allowed. For existing users, this change primarily affects how they can add funds or initiate new trades on the platform.

Trading access is also being restricted. Futures trading is in reduce-only mode, meaning positions can only be reduced rather than increased. On the spot side, the exchange says markets are closed to new orders, effectively freezing new spot trading activity while the company works through the wind-down.

The exchange further indicated that withdrawal handling may change during the process. BitMart said some withdrawal requests could be subject to additional compliance and security reviews, which may extend processing times. This is especially relevant for users who already reported delays after the shutdown announcement.

BMX drops as withdrawals draw complaints

BitMart’s native token, BMX, saw steep losses following the announcement, with the token trading around $0.09464 at the time of writing—down nearly 70% from about $0.31 late Friday. BMX reportedly touched as low as $0.1058 early Saturday before extending its decline, and it later slipped back under $0.10 after a brief recovery.

Alongside the token’s sharp repricing, some users took to X to report withdrawal delays. Posts referenced longer-than-usual processing times, including claims that Tether USD (USDT) withdrawal requests remained pending for hours.

On-chain attribution data from Arkham adds another layer to the story. Arkham’s explorer shows wallets attributed to BitMart holding about $71 million in crypto assets on Sunday, compared with roughly $102 million on July 6. The breakdown highlighted in Arkham data includes about $41.5 million in WeFi’s WFI tokens and a tracked USDT balance of roughly $91,000. While wallet attribution does not automatically confirm what portion is readily withdrawable at any given moment, it provides a snapshot of assets still associated with BitMart-operated addresses.

Token confusion: BMX versus BitMEX developments

In the days following the news, some users on X appeared to conflate BitMart’s BMX token with BitMEX’s token and shutdown process. In one widely circulated post, a Mandarin-speaking community participant flagged BMX’s price decline while discussing the exchange closure narrative online.

Replies then pointed out that the closure dates being discussed did not match BitMart’s timeline and appeared to reflect BitMEX’s own shutdown announcement schedule. Earlier coverage noted BitMEX’s shutdown date and reported that BitMEX’s token, BMEX, dropped sharply shortly after its notice.

Several other users in the Mandarin-speaking crypto community also reportedly mixed up BMX with BitMEX. It was not immediately clear whether this confusion had any direct effect on BMX trading volumes or flows, but the episode highlights a common problem during exchange shutdowns: market participants can react to similar-sounding assets and headlines without confirming which venue the news actually affects.

Why BitMart’s shutdown matters beyond a single platform

BitMart’s decision reflects a broader contraction trend in crypto derivatives and centralized exchange ecosystems. When platforms exit, the immediate effects are operational—new deposits stop, order flow becomes constrained, and users must focus on withdrawals. But there are also second-order consequences for liquidity, custody risk perceptions, and how traders price the tail risk of access during the wind-down period.

For market participants, the timeline is as important as the headlines. BitMart’s approach—ending trading on Aug. 26, continuing operations through a longer wind-down window, and planning final cessation by Jan. 31, 2027—means the risk profile will likely change in stages. Early in the process, users are mainly managing account access and withdrawal reliability; later, liquidity and settlement mechanics may become the primary concern as the remaining operational scope narrows.

In this case, user reports and BitMart’s stated possibility of additional withdrawal reviews suggest processing times may not be uniform for all assets and requests. Traders watching BMX—or any token tied to exchange narratives—may also need to account for the fact that token moves can be amplified by sentiment, confusion, and non-fundamental market behavior during shutdown news cycles.

Readers should monitor whether withdrawal processing stabilizes after the wind-down begins, and whether BitMart provides further operational updates as the company approaches the Aug. 26 trading cutoff. The remaining uncertainty is how consistently withdrawals clear for different asset types and whether any additional compliance or security steps materially extend timelines for users.

Cardano co-founder Charles Hoskinson has warned that Bitcoin could lose its position as the largest cryptocurrency if its governance system cannot organise a response to quantum computing.

He made the comments during an interview with The Starting Block published on July 24. Hoskinson described Bitcoin as “frozen in time” because major changes require wide agreement across developers, miners, node operators and users. He argued that Cardano’s formal voting system gives its community a clearer route for approving upgrades. His comments present a governance argument rather than evidence of an immediate quantum attack.

Hoskinson frames quantum security as a governance test

Bitcoin relies on elliptic-curve cryptography to prove ownership of funds. A sufficiently powerful quantum computer could, in theory, derive private keys from exposed public keys and authorise transactions without the owner’s approval. The U.S. National Institute of Standards and Technology describes this as a future risk and has already standardised algorithms designed to resist quantum attacks.

Hoskinson said quantum computing would test whether Bitcoin can change without weakening the qualities that support its value. He said BTC may not remain the leading cryptocurrency if its governance cannot make progress. However, he did not name another network that would replace it or give a date for a threat.

Bitcoin developers are already studying migration options

Bitcoin has no formal onchain voting body. Developers can propose code, but users and node operators decide whether to run it. Miners, exchanges and wallet providers also influence whether an upgrade gains enough support. This slower process avoids frequent rule changes, though it can make urgent coordination harder.

Work on quantum resistance is already active. Bitcoin Optech has tracked BIP 361, which outlines a phased move away from current ECDSA and Schnorr signatures after developers select a post-quantum system. Other proposals cover new address formats, hybrid signatures and recovery paths. These ideas remain under review.

Any such change would also need wallets, exchanges, custodians and long-dormant holders to migrate funds without splitting the network or creating conflicting ownership rules during a limited transition.

Some researchers estimate that millions of BTC sit in addresses whose public keys are visible. Those coins could face greater exposure if a capable quantum computer appears. The timing remains uncertain, and researchers continue to debate which coins should move, freeze or remain spendable.

Cardano points to formal onchain governance

Cardano completed its move to full community governance through the Plomin hard fork in January 2025. ADA holders can vote directly or delegate voting power to representatives known as DReps. Stake pool operators and a constitutional committee also take part in selected decisions. The system can approve hard forks and treasury withdrawals onchain. 

Hoskinson said Cardano could use that structure to vote on a migration away from quantum-vulnerable infrastructure. Yet Cardano has not completed such a migration. Its governance system must still evaluate technical designs, approve funding and organise users, developers and service providers around any change.

The process has also produced disputes.Cardano delegates rejected or challenged several proposals linked to Hoskinson and Input Output during 2026. One request included research into Leios scaling and quantum-resistant cryptography. Formal voting does not guarantee approval of a founder-backed plan.

Cardano prepares scaling work alongside security research

Hoskinson also said Cardano is preparing for its largest upgrade and claimed the network would become “60 times faster.” Development updates show teams are testing Ouroboros Leios, a design intended to increase throughput by separating block roles and allowing more work in parallel. Developers continue to integrate the prototype with Cardano node software. 

The 60-fold figure remains Hoskinson’s estimate rather than a measured result from the live network. Leios still requires testing, technical review and governance approval. Cardano’s recent van Rossem hard fork shows that DReps, stake pool operators and the constitutional committee can coordinate an upgrade.

Hoskinson described Cardano as a “spiritual successor” to Bitcoin because it keeps a fixed-supply monetary model while adding smart contracts and formal governance. Bitcoin supporters may reject that comparison, since Bitcoin’s limited change process forms part of its security model. Bitcoin depends on broad offchain consensus, while Cardano records many decisions directly onchain.

The quantum issue remains open for both networks. Bitcoin developers are designing migration options, while Cardano is funding research and building governance tools. Neither network has deployed a complete post-quantum transaction system. The practical test will come when developers agree on secure cryptography and communities must decide how to move users and funds.

Institutional trading platform LMAX Group is working with Morgan Stanley and KBW, Stifel’s investment banking arm, to review a possible sale or public listing.

People familiar with the private discussions told CoinDesk that a transaction could value the London-based company at up to $5 billion. The options include a full sale, a special purpose acquisition company merger, and initial public offerings in the U.S. or Europe.

A Nasdaq listing currently ranks as the preferred route, according to one of the unnamed sources. However, LMAX has not started a formal public process or agreed to a transaction. The company said it “declines to comment on speculation.” Morgan Stanley also declined to comment, while Stifel had not responded when the report was published.

LMAX considers several routes to a $5 billion valuation

LMAX operates trading venues and infrastructure for foreign exchange and digital assets. Its clients include banks, brokers, hedge funds and asset managers. The group owns LMAX Exchange, LMAX Global and LMAX Digital. It runs matching infrastructure in London, New York, Tokyo and Singapore, giving institutional clients access across major financial centres. The U.K. Financial Conduct Authority authorises LMAX Limited for specified financial activities.

The reported review does not mean LMAX will complete a sale or IPO. One source said the company felt no pressure to list while crypto markets remained weak. Its established foreign-exchange operation gives it a wider revenue base than companies that depend only on digital asset trading. That mix could allow management and shareholders to wait for better market conditions. It also gives potential buyers exposure to established currency markets and institutional crypto services.

Ripple financing supports LMAX’s cross-asset expansion

LMAX expanded its digital asset business in January through a multi-year partnership with Ripple. Ripple agreed to provide $150 million in financing, while LMAX agreed to integrate the RLUSD stablecoin across its institutional infrastructure. The companies said clients could use RLUSD for settlement, collateral and margin across spot crypto, perpetual futures and contracts for difference.

As crypto.news previously reported, the agreement formed part of a wider flow of capital into centralised finance and institutional market infrastructure. LMAX said RLUSD would also connect with LMAX Custody and its Kiosk service. The arrangement gives institutions another way to move dollar-denominated value between foreign exchange and digital asset positions outside standard banking hours.

Omnia and Kiosk widen the platform beyond spot crypto

In February, LMAX introduced Omnia Exchange, a 24/7 platform designed to let institutions convert traditional and tokenised assets through one API. The company said Omnia would support foreign exchange, cryptocurrencies, commodities and tokenised securities. The launch moved LMAX beyond its earlier focus on separate FX and spot crypto venues.

LMAX added Kiosk in May to combine custody, collateral management and trading access.institutions can deposit digital assets into LMAX Custody and use them across spot FX, precious metals, cryptocurrencies, perpetual futures and other products. In July, LMAX and Standard Chartered also completed their first digital asset prime brokerage trades for Bitcoin and Ether with T+1 settlement.

Crypto firms pursue deals despite weaker IPO conditions

The reported review comes as crypto firms seek scale through acquisitions and public listings. Kraken parent Payward completed its purchase of U.S. derivatives platform Bitnomial in May. Bullish also agreed to buy transfer agent Equiniti for $4.2 billion, adding shareholder recordkeeping and tokenisation infrastructure to its exchange business.

Public market conditions remain uneven. As crypto.news reported, hardware wallet maker Ledger paused its IPO plans because of weak investor demand and difficult market conditions. Blockchain.com, by contrast, filed confidentially for a U.S. listing. LMAX’s foreign-exchange business and recent institutional partnerships may separate it from crypto-only candidates, but any valuation will depend on market demand, financial results and the final structure.

LMAX last disclosed a major private valuation in July 2021. J.C. Flowers agreed to buy a 30% stake for $300 million, valuing the group at $1 billion. That deal involved a secondary sale by employees, while chief executive David Mercer and the management team kept substantial holdings.

A valuation of up to $5 billion would mark a fivefold increase from the 2021 transaction. No adviser or company statement has confirmed that figure as an agreed price. The strategic review remains at an early stage, and LMAX may choose to remain private if available offers or listing terms do not meet its requirements. LMAX has not named a timetable for completing the review process.

BitMart, a cryptocurrency exchange, has announced an orderly wind-down of its trading platform. The firm will end all trading services on Aug. 26 and fully cease operations on Jan. 31, 2027, according to a notice posted to its support portal on Sunday.

As part of the shutdown plan, BitMart said it has stopped accepting new user registrations and deposits. Futures trading has been moved to reduce-only mode, while spot markets will no longer accept new orders—changes that can materially affect liquidity and how quickly users can reposition or exit positions.

Key takeaways

• BitMart will halt trading services on Aug. 26 and close permanently on Jan. 31, 2027, following an orderly wind-down announcement.
• The platform has stopped new registrations and deposits; futures are reduce-only and spot trading no longer accepts new orders.
• BitMart’s native token BMX fell sharply, losing nearly 70% in a short window amid user complaints about withdrawals.
• According to Arkham data, wallets attributed to BitMart held about $71 million in crypto assets on Sunday, down from roughly $102 million on July 6.

BitMart’s wind-down timeline and trading restrictions

In its notice, BitMart said it reached the decision after evaluating “operating conditions, market environment, and future strategic direction,” and that it would begin an orderly wind-down of its trading platform operations.

Operationally, the company has already tightened access: it stopped accepting new user registrations and deposits. It also introduced trading limitations consistent with a platform winding down risk: futures trading was shifted to reduce-only mode, and spot markets stopped taking new orders.

For users, these restrictions typically mean the exchange becomes less capable of accommodating new risk-taking activity, and positions may become harder to manage as market depth changes. The policy also increases the importance of withdrawal functionality, since exiting holdings may be the primary remaining action.

BMX plunges as withdrawal complaints surface

BitMart’s BMX token came under heavy pressure during the announcement cycle. At the time of writing, BMX traded around $0.09464, down nearly 70% from about $0.31 late Friday. The token reportedly slipped as low as $0.1058 early Saturday before extending its decline.

Several users on X reported that withdrawals were taking longer than usual. Some claims focused on Tether’s USDT withdrawals remaining pending for hours.

BitMart also warned that some withdrawal requests could be subject to additional compliance and security reviews, which may extend processing times. That detail can be important for users deciding whether to wait, cancel, or resubmit withdrawal requests as the exchange transitions toward shutdown.

Before publication, BitMart did not respond to a request for comment made by Cointelegraph.

On-chain balances and what Arkham data suggests

While trading has been winding down in stages, attention has turned to whether user funds can be withdrawn smoothly. Arkham data, accessible via its explorer, indicated that wallets attributed to BitMart held about $71 million in crypto assets on Sunday—down from roughly $102 million on July 6.

Of the tracked holdings, about $41.5 million was in stablecoin-banking platform WeFi’s WFI tokens, while BitMart-attributed wallets held about $91,000 in USDT, according to the same Arkham view.

The decline in total assets over the period highlighted by Arkham does not, by itself, explain whether assets are moving into customer withdrawals, into other custody arrangements, or into operational buffers. Still, it provides traders and users with a real-time way to observe whether BitMart-attributed balances are shrinking as the wind-down progresses.

More platform shutdowns—and token confusion around BitMart vs BitMEX

BitMart’s plan places it among a growing list of crypto trading platforms announcing closures. Earlier in the week, BitMEX and Dango also said they would shut down their respective trading platforms, according to Cointelegraph’s coverage of those announcements.

Separately, social media chatter showed some confusion between BitMart’s token and BitMEX-related tickers. On Saturday, an X user in a Mandarin-speaking crypto community referred to BMX’s drop while speculating about the reason, and another user responded—citing a mismatch between online discussion and BitMEX’s announced shutdown date.

That reference did not align with BitMEX’s Sept. 23 shutdown date, as Cointelegraph previously reported. Cointelegraph also noted that BitMEX’s own token BMEX fell about 90% shortly after BitMEX’s notice, while multiple accounts in the same community appeared to mix up BMX with BitMEX.

It was not immediately clear whether that confusion materially affected BMX trading or simply reflected broader information noise during the broader shutdown cycle. Still, it highlights a recurring risk for users: during periods of exchange closures, similarly named products and tokens can lead to misinterpretation of price moves and the underlying drivers.

As BitMart moves from trading restrictions toward full cessation in January 2027, users should watch withdrawal processing times and any further changes to compliance review steps, while traders may want to monitor whether on-chain balances tied to BitMart continue trending downward as the wind-down advances.