Crypto.com, one of the world’s largest crypto exchanges, has halted its institutional trading platform for US clients. The release of this news comes in the wake the Securities and Exchange Commission’s (SEC) decision earlier this week to take legal action against two of the most well-known cryptocurrency exchanges; Coinbase and Binance.
Shutting Down Institutional Service For American Clients
Starting from June 21, Singapore-based cryptocurrency exchange Crypto.com, will no longer provide institutional exchange service for American customers.
The company stated that the decision was made due to the present market climate, which features a low level of demand from institutions located in the United States. However, the decision can be related to an unfortunate consequence of the uncertain regulatory environment for cryptocurrencies in America.
How The Suspension Impacts Crypto.com’s US Clients
According to the company, this decision will only affect institutional traders. These are that can invest large amounts of money in cryptocurrencies compared to retail investors. For regular Crypto.com users, the platform remains fully operational.
Users can still buy, sell, and trade dozens of cryptocurrencies as well as use the company’s popular crypto debit card and mobile application. Additionally, regulated derivatives trading and UpDown Options will continue to be accessible to retail users.
Crypto.com is one of the many crypto companies trying to increase its clientele in the US, with the company even buying the naming rights to Los Angeles Lakers’ home arena in 2021 in a $700 million, 20-year arrangement. However, in recent years, the country has become increasingly difficult for crypto companies to do business in.
CRO price sitting at $0.0519 | Source: CROUSD on TradingView.com
At this point, it’s unclear if or when Crypto.com may resume exchange services for US institutional clients as regulations around crypto trading for big players like hedge funds and investment firms are still evolving in America.
Nevertheless, the company is still taking steps to make crypto trading more accessible to its 80 million plus customers worldwide. This week, the company announced an integration with CoinRoutes to boost its liquidity.
Customers of CoinRoutes include investment managers, OTC desks, and trading companies. As a result of its association with CoinRoutes, both companies will be able to provide improved access to liquidity and minimize friction for institutional investors in cryptocurrencies who are located outside of the United States.
The SEC’s hardline stance is frustrating for many crypto enthusiasts and companies. But as the agency ramps up oversight of the crypto industry, exchanges like Crypto.com have to adapt to the changing regulatory landscape.
Featured image from Los Angeles Times, chart from TradingView.com