Crypto.com to Stop Institutional Services in the US – Regulatory Environment Cited as Key Factor

Crypto.com will stop its institutional services in the United States

This week, the Crypto.com cryptocurrency platform reported that it would close its services for US institutional clients.

The decision is driven by two factors, and the first is, unsurprisingly, the current regulatory climate in the United States. The second reason given would be a lack of activity, which may also be a consequence of the first reason.

So, this decision will take effect from June 21as confirmed to our colleagues at Blockworks:

“We recently made the business decision to suspend the institutional offering of Crypto.com Exchange in the United States effective 11:59 p.m. EDT on June 21, 2023 due to limited institutional demand in the United States in the current landscape. of the market. Affected institutional users have been notified in advance to facilitate a smooth transition. »

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A platform that seems spared for the moment by the SEC

However, its cryptocurrency derivatives solution UpDown Options, regulated by the Commodity Futures Trading Commission (CFTC), is not affected by this announcement, and will therefore remain functional.

Si la Securities and Exchange Commission (SEC) hasn’t taken on Crypto.com yet, however, this might not be surprising in the future, given the events of the past few days. Indeed, the exchange also addresses American clients, and indeed offers assets supposed to be securities according to the interpretation of the SEC.

This will therefore be a point to watch in the coming days or weeks. In parallel, the platform’s CRO token has not been spared by the current market phase.

As of this writing, it was trading at nearly $0.055 per unit, down more than 41% from its yearly high reached last February, all for a 35th place on CoinGecko at capitalization classification.

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Source : Blockworks