The global cryptocurrency exchange cites limited demand for institutional-grade services under current market conditions.
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Crypto.com will no longer serve institutional clients in the United States after announcing the suspension of the service starting June 21.
The Singapore-based cryptocurrency exchange cited limited demand from institutional customers as a primary reason for the move, which has been exacerbated by testing prevailing market conditions.
A statement from Crypto.com noted that the platform’s institutional users were given advance notice of the decision to suspend the service. Crypto.com’s retail mobile application and platform remains fully operational in the United States.
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American retail users still have access to cryptocurrency derivatives trading regulated by the Commodity Futures Trading Commission as well as the exchange’s 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 potential relaunch of its institutional exchange in the United States.
While it closes the curtain on its U.S. institutional offering, Crypto.com recently received an official major payment institution license for digital payment token services from the Monetary Authority of Singapore, allowing it to offer its services in the country.
June 2023 has proven to be a tumultuous month for cryptocurrency exchanges in America. The Securities and Exchange Commission (SEC) set its sights on Binance.US and Coinbase, starting legal proceedings against both exchanges for a myriad of alleged securities laws violations.
The wider cryptocurrency ecosystem has hit back at the SEC’s actions, as the U.S. regulatory crackdown on the industry seems to tighten some eight months on from the collapse of FTX.
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Source: cointelegraph.com
