Cryptocurrency giant Crypto.com has just announced a decision significant impact that will affect all of its institutional clients in the United States.
As of June 21st, Crypto.com will no longer offer its services to institutional clients in the US. The decision, announced on Friday, took the market by surprise, but it is just one of many upheavals we have seen in the crypto ecosystem this month with the SEC lawsuit against other cryptocurrency exchanges.
The justification given by the company for the suspension of the service is a “limited demand” from institutional customers, amplified by the current market scenario. However, retail investors will not be affected by this decision and will continue to be able to use the platform in the US, including Crypto.com's CFTC-regulated UpDown Options.
This announcement coincides with a moment of great tension in the US crypto market. Other major exchanges such as Binance and Coinbase, are facing legal proceedings from the US Securities and Exchange Commission (SEC) for alleged violations of securities laws. Such tumultuous events have the potential to further impact market conditions, which may have played a role in Crypto.com's decision.
Despite the closure of its US institutional service, Crypto.com remains open to a potential US relaunch. Meanwhile, the company was recently awarded an official Major Payment Institution (MPI) license for Digital Payment Token Services (DPT) by the Monetary Authority of Singapore (MAS), allowing it to continue to offer its services in the country.
