Crypto.com, one of the world’s largest cryptocurrency exchanges, has made the decision to suspend its institutional trading platform for clients in the United States. This move comes shortly after the Securities and Exchange Commission (SEC) took legal action against two prominent crypto exchanges, Coinbase and Binance.
Shutting Down Institutional Service for American Clients
Effective June 21, Crypto.com, based in Singapore, will discontinue its institutional exchange services for American customers. The company attributes this decision to the current market climate, which lacks substantial demand from institutions in the United States. However, the choice may also stem from the uncertain regulatory environment surrounding cryptocurrencies in the country.
Impact of the Suspension on Crypto.com’s US Clients
Crypto.com has clarified that the suspension will solely impact institutional traders, those who can invest significant amounts of money in cryptocurrencies compared to retail investors. Regular users of the Crypto.com platform will not be affected as the platform remains fully operational.
Despite the suspension, retail users can continue to buy, sell, and trade a wide range of cryptocurrencies on the platform. They can also utilize the company’s popular crypto debit card and mobile application. Furthermore, retail users will retain access to regulated derivatives trading and UpDown Options.
Crypto.com’s Ongoing Efforts
Like many other cryptocurrency companies, Crypto.com has been striving to expand its clientele in the United States. In fact, the company acquired the naming rights to the Los Angeles Lakers’ home arena in a 20-year, $700 million arrangement in 2021. However, the regulatory landscape in the country has increasingly posed challenges for crypto businesses.
Currently, it remains uncertain when or if Crypto.com will resume exchange services for institutional clients in the US. The evolving nature of regulations surrounding crypto trading for entities such as hedge funds and investment firms in America contributes to the uncertainty.
Nevertheless, Crypto.com continues to take measures aimed at enhancing accessibility to crypto trading for its 80 million-plus customers worldwide. In a recent announcement, the company revealed its integration with CoinRoutes, a move intended to bolster liquidity. CoinRoutes serves a diverse range of customers, including investment managers, OTC desks, and trading companies. Through this partnership, both Crypto.com and CoinRoutes aim to offer improved liquidity access and reduced friction for institutional investors in cryptocurrencies located outside the United States.
Adapting to the Changing Regulatory Landscape
The SEC’s stringent stance on cryptocurrencies has proven frustrating for enthusiasts and companies alike. However, as the regulatory oversight of the crypto industry intensifies, exchanges such as Crypto.com must adapt to the evolving landscape to ensure compliance and sustain their operations.
