Crypto.com announced that it would shut down its institutional exchange services customers in the United States in less than two weeks.
On Friday, Singapore-based crypto exchange Crypto.com announced that it would suspend its institutional exchange service for US customers. In a statement provided to media publication Blockworks, the exchange explained that demand is drying up due to the current market conditions in the US.
Although it did not specifically reference the lawsuits against Binance and Coinbase, it was undoubtedly the overriding factor in the exchange’s decision.
In a statement, Crypto.com said:
We recently made a business decision to suspend the institutional offering of the Crypto.com Exchange in the U.S. as of 11:59 pm 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 explained that the closure of the US services would not affect its retail trading app, including its crypto derivative product, UpDown Options, regulated by the Commodity Futures Trading Commission (CFTC). The company further said it could reopen the platform in the future but did not provide more details.
Crypto.com Receives Major Payment Institution Licence in Singapore
The exchange started the month out well after receiving a Major Payment Institution (MPI) license for Digital Payment Token (DPT) services from the Monetary Authority of Singapore (MAS).
Securing this license means the exchange can offer DPT services to Singaporean customers.
Crypto.com Arena Not Affected
After the exchange announced shuttering its institutional services for US customers, speculation arose that it might affect the naming rights for Crypto.com Arena. The exchange entered into a naming rights agreement with AEG, the owner and operator of the arena formerly known as the Staples Center, in 2021, Forbes reports.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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