Crypto.com will stop serving institutional clients in the United States after announcing the suspension of service effective June 21.
The Singapore-based cryptocurrency exchange cited limited demand from institutional clients as the main reason for the move, which has been compounded by evidence of prevailing market conditions.
A Crypto.com statement notes that institutional users of the platform were notified in advance of the decision to suspend the service. Crypto.com’s mobile app and retail platform remain fully operational in the US.
US retail users continue to have access to CFTC-regulated cryptocurrency derivatives trading, as well as its UpDown Options offering, which allows users to open long or short trading positions on future movements of various cryptocurrencies.
Crypto.com remains open to a possible relaunch of its institutional exchange in the US.
Closing the curtain on its US institutional offering, Crypto.com recently received an official Major Payment Institution (MPI) license for Digital Payments Token (DPT) services from the Monetary Authority of Singapore (MAS). ), which allows it to offer its services in the country.
June 2023 has proven to be a tumultuous month for cryptocurrency exchanges in the Americas.. The Securities and Exchange Commission (SEC) has set its sights on Binance.US and Coinbase, initiating legal proceedings against both exchanges for a myriad of alleged violations of securities laws.
The broader cryptocurrency ecosystem has been critical of the SEC’s actions, as US regulatory action against the sector appears to be tightening eight months after the FTX bankruptcy.
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