GCEX reports drop in turnover in 2023 due to crypto winter
“The crypto winter had a huge impact across the industry, and GCEX was no exception. However, in response to the decline in revenue, we have been resilient and adaptive, navigating our costs effectively and diversifying revenue streams such as introducing staking services for institutional and professional clients.”
GCEX has reported a turnover of £2.30 million for the FX and digital asset brokerage’s UK entity.
Having submitted its accounts for year-end 2023, GCEX attributed the decline in volume, from £4.46 million the previous year, to the crypto winter.
Despite the drop in turnover for y/e 2023, the company reported a steady revenue increase on a monthly basis since the beginning of 2023. This trend has continued into the current year.
GCEX’s UK operation further reported a loss before tax of £387,429 while having distributed £1.80 million during the year to its parent company, GCEX Holding Limited.
“We don’t run risk and don’t do lending or borrowing”
GCEX has been enhancing its offering over the last few year, having made strategic partnerships in the name of deeper liquidity, namely with Crossover Markets, and in the name of an expanded product offering, namely with the addition of staking services via Hex Trust.
The group recently secured two regulatory licenses: an investment firm in Denmark regulated by the Danish Financial Supervisory Authority and a Virtual Asset Service Provider (VASP) license in Dubai, UAE regulated by VARA.
GCEX Group enables institutional and professional clients to access deep liquidity in FX and CFDs on digital assets, as well as digital assets spot trading and conversion, and offers a broad range of Forex brokerage and crypto-native technology solutions – XplorDigital.
Lars Holst, Founder and CEO at GCEX, said: “The crypto winter had a huge impact across the industry, and GCEX was no exception. However, in response to the decline in revenue, we have been resilient and adaptive, navigating our costs effectively and diversifying revenue streams such as introducing staking services for institutional and professional clients.
“We don’t run risk and don’t do lending or borrowing and we continue to have significant excess Tier 1 capital in our UK entity. Following a successful Q1 2024, we are now back to profitability and continue to execute on our long-term plans, investing and expanding in our global business.”
