Amid an increasing regulatory crackdown, the United States is experiencing a significant exodus of cryptocurrency companies. Crypto.com recognized the challenging environment and shut down part of its U.S. operations.
On June 9, Crypto.com announced discontinuing its institutional exchange service for U.S. customers. This move understandably raised concerns among U.S. users about the future of the exchange.
The Singapore-based exchange cited limited demand and growing regulatory concerns as reasons for the decision. The closure, which will take effect on June 21, 2023, will affect about 400 institutional clients using Crypto.com’s services.
This development is a result of a tightening regulatory crackdown on cryptocurrency exchanges. The Securities and Exchange Commission (SEC) recently filed lawsuits against major exchanges such as Binance and Coinbase, causing a significant stir in the industry.
Crypto.com Institutional Exchange, the discontinued service, specifically targeted institutional investors, including hedge funds, banks and other financial institutions that engage in high-volume trading. These institutional exchanges offer advanced trading features tailored to the needs of these entities, such as high liquidity, extensive order books, and low fees.
Although institutional exchange services have yet to be a significant part of Crypto.com‘s U.S. business, its discontinuation raises concerns about its prospects. However, it is essential to note that this decision does not directly impact Crypto.com‘s retail customers. The company has not announced any changes to its services for individual customers in the U.S., so they can continue to use the platform as usual, at least for now. Nevertheless, given the tighter regulatory control by the SEC, there is no guarantee that this situation will stay the same.
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