Crypto.com, a Singapore-based cryptocurrency exchange known for its notable involvement in the crypto industry and advertising campaign with actor Matt Damon, has announced the suspension of its institutional service for US clients. This change, which will take effect on June 21, 2023, is attributed to weak demand from US institutions in the current market landscape. However, this decision will not affect Crypto.com’s retail app, which has more than 80 million users worldwide.
This development comes in a difficult environment for cryptocurrency businesses in the United States, particularly following recent legal actions by the Securities and Exchange Commission (SEC).
SEC Chairman Gary Gensler’s criticism of digital assets being considered unregistered securities adds to the complexity of operating crypto businesses on US soil.
However, Crypto.com’s decision is primarily driven by lack of demand from US institutions, rather than regulatory concerns.
According to cryptocurrency news, the platform explained that the suspension of its institutional services in the United States would not have any impact on its retail trading application, including its cryptocurrency derivative product, UpDown Options, regulated by the Commodity Futures Trading Commission (CFTC). . The company hinted that it may reopen the platform in the future, without giving further details.
Besides, the beginning of the month was marked by good news for Crypto.com, as it obtained a Large Payment Institution (MPI) license for the Digital Payment Token (DPT) services from the Monetary Authority. of Singapore (MAS). This license allows the exchange to offer DPT services to its Singaporean customers.
Following news of the suspension of its institutional services for US clients, speculation arose as to the potential impact of the move on Crypto.com arena naming rights.
However, the 2021 naming rights deal with AEG, owner and operator of the arena previously known as Staples Center, would not be affected.
In sum, despite the current difficult environment for cryptocurrency businesses in the United States, Crypto.com continues to operate by adapting its services to market demand while maintaining the operation of its retail application and strengthening its operations on other markets, such as Singapore.
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