Hideo Nakamura Singapore-based cryptocurrency exchange Crypto.com has announced its decision to halt services for institutional traders in the United States on June 21, 2023. The exchange cited “limited demand” as the primary reason for suspending its institutional offering.
In an official announcement, Crypto.com stated that it will be closing its U.S. institutional services on June 21, while assuring its retail clients that their services will remain unaffected. The exchange confirmed that all institutional partners have been notified about the decision.
The move by Crypto.com comes as a response to the “limited demand” in the current market landscape in the United States. This decision follows recent lawsuits filed by the U.S. Securities and Exchange Commission against major cryptocurrency exchanges Binance and Coinbase.
A spokesperson from Crypto.com clarified that this decision will not impact the naming rights for Crypto.com Arena in Los Angeles. The company expressed confidence in its market differentiating capabilities and offerings, assuring that it will continue to provide regulated services in the markets where it operates.
Despite suspending its U.S. institutional services, Crypto.com highlighted the potential for a future comeback. Just a day prior to the announcement, the company had formed a partnership with Coinroutes to enhance institutional access to liquidity in the digital assets market. Additionally, Crypto.com recently obtained a major payment institution license from the Monetary Authority of Singapore (MAS).
What are your thoughts on Crypto.com’s decision to suspend its institutional services in the U.S.? Feel free to share your opinions and thoughts about this development in the comments section below.
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Frequently Asked Questions (FAQs) about cryptocurrency exchange, limited demand
What is the reason behind Crypto.com’s decision to suspend its institutional services in the U.S.?
Crypto.com has decided to suspend its institutional services in the U.S. due to “limited demand” in the country’s current market landscape. They have identified a lack of significant interest from institutional traders as the primary factor influencing their decision.
Will this decision by Crypto.com affect its retail clients?
No, the decision to halt institutional services in the U.S. will not impact Crypto.com’s retail clients. The suspension only applies to institutional traders, while retail services will continue unaffected. Crypto.com reassures its retail clients that their services will remain intact.
What prompted Crypto.com to make this decision?
The decision to suspend institutional services by Crypto.com follows recent lawsuits filed by the U.S. Securities and Exchange Commission (SEC) against major cryptocurrency exchanges, including Binance and Coinbase. These legal actions have likely influenced Crypto.com’s assessment of the market and contributed to their decision.
Is there a possibility for Crypto.com to revive its U.S. institutional division in the future?
Yes, Crypto.com has expressed the potential for its U.S. institutional division to make a comeback. While they are currently halting services, the company remains confident in its market differentiating capabilities and offerings. They are open to resuming institutional services if market conditions change or demand increases in the future.
What other recent developments have occurred for Crypto.com?
Crypto.com recently forged a partnership with Coinroutes to enhance institutional access to liquidity within the digital assets market. Additionally, they obtained a major payment institution license from the Monetary Authority of Singapore (MAS). These developments signify the company’s ongoing efforts to strengthen its services and expand its regulatory compliance framework.
More about cryptocurrency exchange, limited demand
- Crypto.com Official Website
- U.S. Securities and Exchange Commission (SEC)
- Binance Official Website
- Coinbase Official Website
- Monetary Authority of Singapore (MAS)
