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Popular Bitcoin Lending Platform, BitLendingClub has announce via email that it may be closing in coming weeks citing regulatory pressure as the main reason.

The email goes as follows:

BitLendingClub Closing Soon Due to Regulatory Pressure

Dear Customers, We’ve worked extremely hard to build a platform and a community which is uniquely positioned to provide the Bitcoin ecosystem with a greatly needed service. However, over the last year or so, the regulatory pressures has been increasing to the point that it is no longer feasible to maintain the operation of the platform. We are regretfully announcing that we will have to begin terminating the services effective immediately. Of course, we will maintain some minimal functionality in order to allow our existing users to repay their loans and withdraw their funds.

What Functionality Will Remain? We will restrict the functionality of the website to either repaying a loan, depositing to repay or withdrawing funds. There will be no new registrations, loan requests, verification of new users, investments or anything else. Just repaying of the existing loans or withdrawal.

When Will The Service Become Restricted? We expect to begin restricting the functionality sometime next week. We don’t have a specific date, but we will send out an e-mail when the change occurs.

How Long Will The Platform Remain Operational With Restricted Functionality? The platform will remain operational with the limited functionality for 30 days after all loans are either repaid or written off (i.e. they have defaulted and are written off). After that we will be terminating the services completely. The expected termination date is approximately August 2017. it may be earlier or later, but that’s subject to change.

How Long Do We Have To Withdraw Our Funds?
Users will be able to withdraw their funds up to 30 days after the last loan is repaid or marked as written off. We will completely terminate the platform 30 days after the last loan is repaid or written off. We recommend that you begin withdrawing your funds immediately.

Again, we’re extremely sad to be delivering this news, but that’s the reality of operating a business in the Bitcoin ecosystem. There are regulatory pressures, which make business extremely difficult and we have always done everything possible to be compliant with regulators. Given that we’ve reached the point where it is no longer feasible to run the platform and be compliant, we have decided to terminate the platform.

Best Wishes, The BitLendingClub Team

What happens next for BitLendingClub?

  • BitLendingClub come next week will not be taking any new registrations. Account Holders will be able to make withdrawal for any funds within 30 days starting next week.
  • At the end of this 30 day period, once all the loans have been repaid or written off will be additional restrictions.
  • Loans on the Platform have effectively been written off/defaulted hence no additional loans will be listed/offered.
  • The final restriction period will see a complete termination of services is expected near August 2017 although subject to changes.

So bid farewell to one of Bitcoins largest Lending platforms and hope that someone fills the void.

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Source: BitLendingClub

 

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