Bitrabo Editorial
Crypto.com, which is among the world’s largest cryptocurrency exchanges, has announced that it is suspending its institutional trading platform for customers in the United States. The decision follows the recent legal action by the Securities and Exchange Commission (SEC) against two of the most popular cryptocurrency exchanges, Coinbase and Binance.
Halting Institutional Service for American Clients
Crypto.com suspended its institutional exchange service for US-based customers from June 21. The Singapore-based company cited a lack of demand from US-based institutional players. However, this decision can also be seen as a consequence of the uncertain regulatory environment of cryptocurrencies in America.
Impact of Suspension on Crypto.com’s US Customers
The suspension only affects institutional traders, who can invest large sums of money in cryptocurrencies compared to retail investors. Regular users of Crypto.com can continue to use the platform as before, with the ability to buy, sell, and trade dozens of cryptocurrencies and use the company’s popular crypto debit card and mobile application. Additionally, regulated derivatives trading and UpDown Options will remain accessible to retail customers.
Crypto.com had bought the naming rights to the Los Angeles Lakers’ home stadium in 2021 for a record $700 million investment. However, it’s becoming increasingly difficult for cryptocurrency firms to do business in the US.
Resuming Exchange Services for US Institutional Clients
It’s unclear whether and when Crypto.com will resume exchange services for institutional clients in the US, as regulations around crypto trading for hedge funds and investment firms are still evolving in America. While the SEC’s position is frustrating for cryptocurrency firms and enthusiasts, Crypto.com is still making efforts to make crypto trading more accessible to its 80 million plus customers globally. Recently, it announced an integration with CoinRoutes to improve liquidity.
This integration will help improve access to liquidity and reduce friction for institutional investors in cryptocurrencies located outside of the United States. CoinRoutes’ customers include investment managers, OTC desks, and trading firms.
The SEC’s increased oversight of the crypto industry is leading to changes in the regulatory environment, with exchanges like Crypto.com adapting to the changing landscape.
Featured image by Los Angeles Times, chart by TradingView.com