Crypto.com, one of the world’s largest cryptocurrency exchanges, has suspended its institutional trading platform for US customers. The release of this news follows the Securities and Exchange Commission (SEC) decision earlier this week to take legal action against two of the most popular cryptocurrency exchanges; Coinbase and Binance.
Closed institutional service to US customers
Starting June 21, Singapore-based Crypto.com will no longer offer institutional exchange service to US customers.
The company stated that the decision was taken due to the current market climate, which is characterized by a low level of demand from institutions located in the United States. However, the decision could be related to the unfortunate outcome of the uncertain regulatory environment for cryptocurrencies in America.
How the suspension affects US Crypto.com customers
According to the company, this decision will only affect institutional traders. These are the ones that can invest large sums of money in cryptocurrencies compared to retail investors. For regular Crypto.com users, the platform remains fully functional.
Users can still buy, sell, and trade dozens of cryptocurrencies in addition to using the company’s popular crypto debit card and mobile app. In addition, trading in regulated derivatives and UpDown options will remain accessible to retail users.
Crypto.com is one of many crypto companies trying to increase its clientele in the US, with the company even buying the naming rights to the 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 is not clear if or when Crypto.com may resume exchange services for US institutional clients as regulations around cryptocurrency trading for large players such as hedge funds and investment firms are still evolving in America.
However, the company is still taking steps to make cryptocurrency trading accessible to more than 80 million customers worldwide. This week, the company announced its integration with CoinRoutes to boost its liquidity.
CoinRoutes’ clients include investment managers, OTC bureaus, and trading firms. As a result of their association with CoinRoutes, both companies will be able to provide improved access to liquidity and reduce friction for institutional investors in cryptocurrencies based outside of the United States.
The SEC’s tough stance is frustrating many cryptocurrency enthusiast companies. But as the agency ramps up oversight of the crypto industry, exchanges like Crypto.com are having to adapt to the changing regulatory landscape.
Featured image from Los Angeles Times, chart from TradingView.com