The crypto exchange Crypto.com has announced that it will no longer serve its institutional clients from the United States.
Limited demand from institutional clients
As of June 21, Crypto.com, the Singapore-based crypto exchange, will no longer serve its institutional clients in the United States. The primary driver of this decision is limited demand from institutional clients, a situation exacerbated by the current market conditions.
While this decision affects its institutional clients, Crypto.com has emphasized that everyone involved has been notified of this change in advance. In addition, the normal platform, including the mobile App, will remain fully operational for US users.
Door remains open to reintroduce product in better times
Despite this temporary step back, the door remains open for a possible reintroduction of Crypto.com’s institutional exchange service in the United States.
While this potential relaunch looms on the horizon, Crypto.com has also taken a big step forward recently. Namely, it has received an official license from the Monetary Authority of Singapore to provide digital payment token services. This allows Crypto.com to expand its services within Singapore, despite withdrawing from the institutional market in the US.
Troubled month
June 2023 has become a turbulent period for crypto exchanges in America. The US Securities and Exchange Commission (SEC) has targeted both Binance.US and Coinbase and has initiated legal proceedings against both exchanges over numerous alleged securities law violations.
It appears that eight months after FTX’s collapse, US regulation has ramped up its strict approach to the industry. This has created an environment where the crypto ecosystem is increasingly resilient to regulatory pressures.