Key Points:
- The cryptocurrency exchange stopped providing services to institutional clients in the United States on June 21.
- This outage comes from “limited demand” from institutional clients due to the “current market landscape”.
- Retail investors will not be affected by this decision and will continue to be able to use the platform in the United States.
The company announced on Friday that Crypto.com will no longer offer its services to institutional customers in the United States, effective June 21. The Singapore-based crypto exchange has announced that it will no longer provide services to institutional customers in the United States from June 21.
The Crypto.com exchange said that institutional users have been informed in advance of the decision to suspend services given the “current market context,” which has “limited demand” from institutional customers. Retail investors will not be affected by this decision and will continue to be able to use the platform in the United States.
The decision came in the same week as crypto exchanges Binance and Coinbase were sued by the US Securities and Exchange Commission (SEC), alleging that they violated securities laws.
On-chain data shows that since enforcement action by the US Securities and Exchange Commission (SEC) comes 12 hours after Binance.US announced it was suspending USD deposits and notifying customers that they were preparing to suspend fiat withdrawals, the exchange has seen a negative net outflow of $25.4 million in the past 24 hours and $1.4 million in the past hour.
Cryptocurrency companies are scaling back in the United States as regulators expand their desire to control the cryptocurrency market with draconian regulations. The massive exodus of crypto companies to leave the US and European markets to other Asian promised lands like Hong Kong has begun since the beginning of the year.
Last week, the Monetary Authority of Singapore (MAS) awarded crypto exchange Crypto.com a significant payment institution (MPI) license for digital payment token (DPT) services from June 1. With the license, Crypto.com can continue to provide DPT services to domestic consumers, including cryptocurrency issuance, account issuance, and cross-border and domestic remittances.
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Source: https://news.coincu.com/193809-cryptocom-end-support-us-institutional/