*Crypto.com will suspend its US professional institutional exchange service by June 21.
*The decision is due to a decline in demand impacted by the present market conditions and pending legal proceedings against exchanges like Binance and Coinbase.
* Both the retail mobile app and website will continue to function normally for clients in the United States.
*Crypto.com will still offer regulated trading of crypto derivatives and accessibility to the UpDown Options product in the US.
*The SEC has identified several tokens traded on Crypto.com as securities.
*The exchange may reopen its institutional trading platform in the future if market conditions change but has not provided further details.
Singapore-based Crypto.com will end its US institutional exchange business. The current market and legal activities against Binance and Coinbase have caused a reduction in demand, prompting this June 21st adjustment.
Crypto.com said its retail mobile app and infrastructure would continue to work for US users after its institutional operation shut down. The exchange guaranteed CFTC-regulated retail trading of bitcoin futures and ongoing availability of UpDown Options.
Crypto.com suspended its institutional offering due to market conditions. The exchange gave affected institutions ample notice to facilitate a seamless transition. The SEC has classified certain Crypto.com tokens as securities, including Solana, Sandbox, MATIC, CHZ, BNB, MANA, ALGO, and others, although additional exchanges were not named.
ANOTHER ONE: “https://t.co/dh8nifD9RZ will no longer serve institutional clients in the US 🇺🇸 after announcing the suspension of the service starting June
HARD TIME FOR CRYPTO
— Omprakashsingh (@Ompraka24574904) June 10, 2023
The company may reopen its institutional trading platform if market conditions allow, but the company has not provided any additional details on that. Crypto.com stated that it is adapting to new regulations and international marketplaces. It has Digital Payment Token (DPT) licenses from Dubai’s Virtual Asset Regulatory Authority (VARA) and Singapore’s MAS.
Crypto.com announced earlier this year that around 1,000 employees, or 20% of the company, would be laid off. Market conditions prompted this shift. While Crypto.com had a robust balance sheet, CEO Marszalek noted that negative industry developments prompted modifications owing to economic headwinds and unplanned business events. Early 2022 growth was ambitious and in line with the industry average, but many circumstances changed its course.