Crypto.com, the Singapore-based cryptocurrency exchange, has announced the suspension of its institutional exchange service for US customers due to limited demand. The decision comes in response to the current market conditions and regulatory concerns in the US, likely influenced by recent legal actions against other major exchanges such as Binance and Coinbase.
The closure of the institutional exchange service will take effect on June 21, 2023. Crypto.com has assured its retail trading app users that this decision will not affect their trading experience on the platform.
In a statement provided to Blockworks, Crypto.com explained that the suspension was prompted by the lack of demand from US institutions. The affected institutional users were given advanced notice to ensure a smooth transition.
While the institutional exchange service is being suspended, Crypto.com's retail mobile application and platform will remain fully operational for US users. Retail customers will continue to have access to cryptocurrency derivatives trading, regulated by the Commodity Futures Trading Commission (CFTC), as well as the UpDown Options offering, allowing them to open long or short trading positions on various cryptocurrencies.
Although Crypto.com is winding down its institutional business in the US, the company has not ruled out the possibility of relaunching the service in the future. The decision to suspend the institutional exchange comes as Crypto.com recently obtained a major payment institution license for digital payment token services from the Monetary Authority of Singapore, enabling it to offer its services within the country.
The month of June 2023 has proven to be a challenging period for cryptocurrency exchanges in the US. The Securities and Exchange Commission (SEC) has initiated legal proceedings against Binance.US and Coinbase, alleging violations of securities laws. The industry as a whole is experiencing increased regulatory scrutiny, with the SEC's actions tightening the regulatory landscape for cryptocurrencies in the US.
Crypto.com's decision to suspend its US institutional exchange service reflects the evolving nature of the cryptocurrency market and the need for exchanges to adapt to changing conditions and regulatory requirements. As the industry continues to develop, it is expected that further adjustments and refinements will occur to ensure compliance and meet the needs of market participants.
Reference:
URL: https://cointelegraph.com/news/crypto-com-suspends-us-institutional-exchange-service
Post a Comment