Vogogo Shutdown can effect many Bitcoin Exchange Services

Bitcoin services startup Vogogo is closing its cryptocurrency-focused payment processing service next month after it failed to gain traction, a move that comes amid the exits of several executives and reports that at least some bitcoin services will be affected in the near-term.

The closure is notable given the relatively small size of the country's bitcoin industry and Vogogo's position as a visible service provider in Canada.

One bitcoin exchange, Coinbase, which used Vogogo as a payments processor for the Canadian market, has been affected by the shutdown, telling customers in that country that it won't be able to offer support after the end of this month.

Other exchanges that operate in Canada, most notably Kraken and QuadrigaX, say they aren't affected by the closure.

In an email sent to Canada-based customers and later circulated via social media, exchange service Coinbase said that it wouldn’t be able to provide electronic funds transfers or Interac transfers for those clients, or store funds denominated in Canadian dollars. Those funds need to be withdrawn by 29th July, the email said.

Bitcoin service Celery said that about 10% of its volume comes from Canada since its integration with Vogogo in 2015, and that it hadn’t yet spoken to customers about alternatives. Founder Ilya Subkhankulov suggested that alternatives within Canada for bitcoin companies might be few and far between given the existing financial climate.

Kraken CEO Jesse Powell said that while Vogogo was the firm’s main processing service for Canadian dollars, he said the exchange had alternatives to turn to following the closure.