According to the recent announcement from Singaporean-based cryptocurrency exchange Crypto.com, it will no longer serve its United States-based clients starting from June 21.
The move to halt service arrived on the heels of decreased user demand in the current market scenario. The exchange noted that prior notice was provided to users about the decision to suspend services.
As a result, the company is now limiting its business to retailers in the U.S. These investors won’t be affected by the company’s decision and will continue to use the platform in the U.S., including Crypto.com’s C-regulated UpDown Options.
At the same time, the mobile-based application and platform of the exchange will be available for customers. It is not yet clear whether the digital asset provider will relaunch its services sometime in the future.
Most importantly, Crypto.com secured a significant payment institution license for digital payment token services from the Monetary Authority of Singapore, allowing them to offer its broader services within the country.
Kris Marszalek, the Chief Executive Officer of Crypto.com, stated that the Monetary Authority of Singapore is a globally renowned authority that ensures responsible innovation in the digital assets sector and it also believes that the exchange will form many more fruitful partnerships in the future.
Following the harsh actions taken by the U.S. Securities and Exchange Commission (SEC) against prominent crypto exchanges, numerous exchanges have already halted their services, and some are planning to exit the U.S. market.
Most recently, the SEC dragged Coinbase and Binance into a lawsuit for selling unregistered securities and earning billions of dollars in profit. Subsequently, crypto market capitalization declined over a few percent in the last few days.
Some leading tokens and coins, including Bitcoin, Ethereum, Dogecoin, Shiba Inu, Cardano, Solana, Gala, and The Sandbox, fell by 4-32% in weekly trading sessions. Following the SEC’s actions, Tether overtook Bitcoin and acquired the top position in the market in terms of trading volume.
Is Crypto Adoption Slipping Globally?
As per available data, crypto adoption is declining rapidly in selected regions, including China and other parts of Asia. The decreasing crypto adoption might be a reaction against recent events or due to a lack of awareness about crypto and its benefits.
China was one of the first nations to ban the usage of cryptocurrencies and to entirely restrict all other crypto-related activities, including mining and minting. However, Hong Kong has started developing a better infrastructure for crypto-focused companies, and in the last few months, dozens of companies have applied to gain approval.
At press time, the leader of all cryptocurrencies, Bitcoin, was trading at $25,842 with 24 hours trading volume of $12 billion. Following the SEC’s action, trading volume of BTC slipped by over 19%, and in weekly trading sessions, prices declined by more than 3.50%.
Ethereum has also recorded a sharp price drop. It slipped by more than 7% in weekly sessions. The declining market may present an opportunity for investors as the decreasing price of some popular tokens might lure users into holding or trading more tokens, and this could potentially result in a recovery of prices.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/12/crypto-com-to-halt-institutional-exchange-services-in-the-u-s/