Crypto.com shuts down its US institutional exchange
Crypto.com has announced plans to discontinue its institutional exchange service for professional customers in the United States as soon as June 21.
The Singapore-based cryptocurrency exchange cited a decline in demand, likely influenced by the current market conditions in the US, including the ongoing legal actions against prominent exchanges such as Binance and Coinbase.
According to a statement from Crypto.com, the platform provided advance notice to its institutional users regarding the suspension of its institutional service. The exchange also stressed that its retail mobile application and platform will continue to operate as usual for users in the United States.
Furthermore, Crypto.com continues to offer cryptocurrency derivatives trading that is regulated by the CFTC. Additionally, retail users have been assured that the UpDown Options product remains accessible in the United States.
“We recently made a business decision to suspend the institutional offering of the Crypto.com Exchange in the U.S. as of 11:59pm EDT June 21, 2023, due to limited demand from institutions in the U.S. in the current market landscape. Impacted institutional users were given advance notice to support a smooth transition,” the exchange said in a statement.
Although not explicitly mentioning the lawsuits against fellow exchanges, the SEC has marked multiple tokens traded on the Crypto.com platform as securities. These tokens include Solana, Sandbox, MATIC, CHZ, BNB, MANA, ALGO, and others.
The crypto exchange stated that it might consider reopening its institutional trading platform in the future if there is a shift in market conditions. However, it refrained from divulging further details regarding the specific changes that would need to resume operations.
While Crypto.com remains unaffected by the SEC’s probe, it has taken a proactive approach to navigating the evolving regulatory landscape and tapping into new international markets. Recently, it received a Major Payment Institution (MPI) license for Digital Payment Token (DPT) services from the Monetary Authority of Singapore (MAS). It also secured the Minimal Viable Product (MVP) license from Dubai’s Virtual Asset Regulatory Authority (VARA).
Crypto.com was in the news earlier this year when it announced plans to lay off 20% of its corporate workforce, or nearly 1000 people, in order to adapt to current market conditions. At the time, CEO Marszalek said several factors played into their decision to reduce headcount. Despite maintaining a strong balance sheet, he claims, Crypto.com had to navigate economic headwinds and unforeseeable industry events. He explains that they grew ambitiously at the start of 2022, aligning with the broader industry, but the trajectory has now changed with a confluence of negative developments.