The UK-based bitcoin exchange platform Netagio has announced plans to restructure its current business. The company will stop providing exchange and trading services and will launch a cash storage ‘facility’ in March 2015.

The Isle of Man-based company initially provided bitcoin storage vault solutions and exchange between bitcoin and gold. The pound sterling exchange was added in July 2014 and trading order books in euros and U.S. dollars were issued in December following the closure of gold trading due to “weak demand”. News about the closure of bitcoin services have come unexpectedly as last month Netagio added a new payment option via major international credit and debit cards.

Netagio was founded as a subsidiary company of GoldMoney Network Limited and still shares board members with it, while the company's CEO Simon Hamblin previously worked at GoldMoney for 2 years. GoldMoney specialises in online sales and the physical storage of gold and other precious metals.

Netagio blamed the pivot on its business strategy on stagnation of the bitcoin industry as whole. The company also mentioned regulatory and safety issues among the reasons they quit the digital currency space. According to the statistics cited in the press release, the UK market has gained only 0.25% of all bitcoin trading, which Netagio's experts ascribe to the UK banks’ tough attitude towards bitcoin businesses.

Simon Hamblin, the company's CEO wrote in the press release:

“We are immensely proud of our efforts and achievements to date while facing the reality of a stagnating market place in Europe, in an environment of regulatory and political uncertainty facing Bitcoin businesses. As experienced Board representatives we recognise when industry winds blow in other directions and it is time to review and restructure.” 

Bitcoin startups have reported previously that British banks shut down their accounts simply for dealing with bitcoin. The Safello bitcoin exchange had to withdraw its services from the UK market last month because of this. The UK regulatory climate, however, is favourable to bitcoin. Chancellor George Osborne announced a special programme to look into the possibility of regulating digital currencies in Britain last year. The UK Government launched a call for information to reach out to the members of the financial industry in December 2014.