Crypto.com just suspended its US institutional exchange

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Another exchange closes in the United States. Another NBA arena naming right could be in play.

Crypto.com has just suspended its US institutional exchange. They will no longer serve institutional clients as of June 21.

The timing makes sense, the week was full of news with the SEC, Binance and Coinbase. And that adds to a long list of others the SEC has targeted in 2023.

In addition to spurring innovation overseas, regulatory fears have crushed demand for institutions to invest in the space. In a statement to Blockworks, Crypto.com said this was due to limited demand from institutions in the United States in the current market landscape.

Currently, this only applies to institutions using Crypto.com. Retail users have been assured that the application will continue as normal.

And so far, they haven’t been targeted by the SEC. They even have a derivative product built into their retail trading app which is regulated by the Commodity Futures Trading Commission (CFTC).

As they close the door to US institutions, they have also just applied for a license to offer these same services in Singapore.

Ultimately, all of this may be tied to one thing: unclear US regulations.

This is the same reason why Coinbase is considering moving overseas. You can’t blame them. They followed all the rules in the book and tried to conform as much as possible. In return, they received a lawsuit.

Crypto as an industry will continue, with or without the United States.

Crypto.com was founded in 2016 and is located in Singapore. It was actually called Monaco when it was created, but the 4 founders picked up the Crypto.com domain in 2018.

And Crypto.com is an appropriate name. They do it all when it comes to crypto:

First of all, they are a centralized crypto exchange, they allow users to buy and sell crypto and they hold your assets for you. They started offering VISA cards with crypto rewards in 2018, becoming a major part of their business back then. finally able to enter the US market in 2020 with their services and growth has been explosive from there, reaching 5 million active users. They had a monster year in 2022, growing to over 50 million users and buying the Clippers NBA stadium naming rights.

Crypto.com has decided to suspend its US institutional exchange due to a lack of demand. Their retail business will continue as normal and has been a major driver of their success since launching in 2020.

But as regulations in the United States are still unclear, institutions are discouraged from investing in the space. Others are forced to go abroad.

Despite this setback, Crypto.com has retained an important role in the crypto space. With 5 million users in the United States and 50 million worldwide, they have formed a loyal community and launched several unique products.

Regulation may be a hindrance for the crypto industry in the United States, but innovation will continue regardless.

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