- Crypto.com cited limited demand for institutional-grade services.
- The services will be suspended from June 21.
- Crypto.com’s retail mobile application and platform remain fully operational in the US.
Crypto.com has announced that it will discontinue its institutional exchange services in the United States from June 21, this year. This means that the services will no longer provide institutional clients with services in the United States.
While a majority of crypto players are worried about the ongoing crypto onslaught by the US Securities and Exchanges Commission (SEC), Crypto.com cited the lack of institutional demand as the main driver behind the decision, which was made worse by market testing.
The exchange, however, remains open to a potential re-launch of the suspended institutional exchange services in the US if the market conditions change.
Retail crypto services still available in the US
According to a statement from Crypto.com, institutional users of the platform were informed in advance that the service would be suspended. The exchange, however, maintains that its retail mobile application and platform remain fully operational in the US.
In addition, Crypto.com’s CFTC-regulated cryptocurrency derivatives trading is still available to American retail users, as well as its UpDown Options product, which enables users to open long or short trading positions on potential future movements of different cryptocurrencies.
Crypto onslaught by the SEC in the US
The month of June 2023 has proven to be the most turbulent in the history of cryptocurrency exchanges operating in the US. The Securities and Exchange Commission (SEC) started legal action against both Binance and Coinbase for a variety of allegations including violations of the securities laws.
The SEC’s actions have drawn criticism from the larger cryptocurrency community as the SEC appears to be tightening its regulatory clampdown on the sector eight months after FTX’s demise.
While Crypto.com is yet to be probed by the SEC, the exchange has maintained its expansion throughout the world. The Monetary Authority of Singapore (MAS) recently granted Crypto.com an official major payment institution (MPI) license for digital payment token (DPT) services, enabling it to provide its services there even as it shutters its US institutional offering.