- Crypto.com is ceasing its institutional services in the US, effective June 21, 2023.
- Regulatory concerns and limited demand drive the decision.
- The move follows an SEC crackdown on crypto exchanges.
Amid the escalating regulatory crackdown, the US is seeing a true exodus of crypto companies. In that environment, Crypto.com decided that a part of its US business was no longer viable.
On Friday, June 9, Crypto.com announced it would shut down its institutional exchange service for US customers. This has raised concerns among US users on the future of the exchange.
Why Crypto.com is Shutting Down a Part of US Business
On Friday, June 9, Crypto.com announced its decision to cease its institutional services in the US. The Singapore-based exchange cited limited demand and increasing regulatory concerns.
Sponsored
The closure, effective from June 21, 2023, is expected to impact some 400 institutional clients who have been leveraging Crypto.com’s services.
The decision comes amid a broader regulatory crackdown on crypto exchanges. Specifically, it comes after the Securities and Exchange Commission (SEC) filed lawsuits against Binance and Coinbase.
What Is Crypto.com Institutional Exchange?
Crypto.com Institutional Exchange is a platform designed to cater to the needs of institutional investors. These investors typically include hedge funds, banks, and other financial institutions that trade large volumes.
Sponsored
Institutional exchanges offer a suite of advanced trading features tailored to the needs of these large-scale traders. These include high liquidity, deep order books, and low fees, essential for these large-scale traders.
While the institutional exchange service was not a major part of Crypto.com’s business in the US, it still raises concern over the future prospects for the exchange.
What Does This Mean for Crypto.com Retail Users?
Crypto.com’s decision to shut down its institutional exchange service in the US does not directly affect its retail users. The company has not announced any changes to its retail services for individual customers in the US.
This means that retail customers can, for now, continue to use Crypto.com’s services as usual. However, there are no guarantees that this can’t change in the future, especially now that the SEC is intensifying its crackdown on exchanges.
Crypto.com Latest Domino After Binance, Coinbase?
Crypto.com’s decision to exit the US institutional market comes amid increasing regulatory scrutiny on crypto exchanges in the US. The Securities and Exchange Commission has put forth legal action against Binance and Coinbase.
In response to the crackdown, the trading app Robinhood has delisted several crypto assets mentioned in the SEC’s lawsuit.
Binance, on the other hand, has decided to end US dollar deposits and withdrawals. However, the decision might have come after Binance’s banking partners revealed they would cut ties with the exchange.
In contrast, Coinbase decided to keep its services open, with CEO Brian Armstrong saying they would fight the SEC all the way to the Supreme Court.
On the Flipside
- Crypto exchanges argue that the lack of regulatory clarity, as well as stringent rules, are pushing US exchanges overseas.
- The decision to shut down a part of their US business won’t affect Crypto.com’s naming rights over the Lakers Arena.
Why This Matters
The decision by Crypto.com to shut down its US institutional exchange service highlights the increasing regulatory pressures faced by crypto businesses in the US.
Read more about Gensler’s unexpected ties to Binance
SEC Chair Gary Gensler Derided for Shock Binance Ties
Read more about exchanges firing back against the SEC:
Robinhood Claims SEC Dismissed Their Attempts to Register as Crypto Broker
