Crypto.com, the Singapore-based cryptocurrency exchange, has announced the suspension of its service to institutional clients in the United States, effective from June 21. The move is attributed to limited demand from institutional customers, a situation that has been aggravated by challenging market conditions. The platform’s institutional users were given advance notice about the service suspension.
Despite this, Crypto.com’s retail mobile application and platform will continue to operate in the U.S. The retail customers can still access cryptocurrency derivatives trading regulated by the Commodity Futures Trading Commission, as well as the exchange’s UpDown Options feature. This allows users to speculate on the future movements of various cryptocurrencies, by opening long or short trading positions.
The company remains open to the possibility of reinstating its institutional exchange service in the U.S. in the future.
While the firm’s U.S. institutional offering is being suspended, Crypto.com recently received a major payment institution license from the Monetary Authority of Singapore for digital payment token services. This enables the company to continue offering its services in Singapore.
June 2023 has been a volatile month for cryptocurrency exchanges operating in the U.S. The Securities and Exchange Commission (SEC) initiated legal actions against Binance.US and Coinbase, citing various alleged violations of securities laws.
These developments come as part of a growing regulatory crackdown on the cryptocurrency industry in the U.S., which has been intensifying over the past eight months, following the collapse of the FTX exchange. The wider cryptocurrency ecosystem has responded critically to the SEC’s actions, highlighting the ongoing tension between the crypto industry and regulatory authorities.
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