Following Crypto.com’s recent decision to suspend its institutional exchange services in the United States, the cryptocurrency community has been left questioning the longevity of these platforms. The Singapore-based exchange cited limited demand from institutional clients amidst testing market conditions as the primary reason for the suspension, effective from June 21. However, Crypto.com’s retail mobile application and platform will remain fully operational in the U.S.
The move comes at a time when the cryptocurrency ecosystem faces intense scrutiny from regulatory bodies. In June, the U.S. Securities and Exchange Commission (SEC) targeted Binance.US and Coinbase, starting legal proceedings against both exchanges for alleged securities law violations. This crackdown on the cryptocurrency industry has drawn criticism from various stakeholders.
Despite shutting down its U.S. institutional offering for now, Crypto.com remains open to the possibility of relaunching its institutional exchange services in the country. In the meantime, the platform received an official major payment institution (MPI) license for digital payment token (DPT) services by the Monetary Authority of Singapore (MAS), allowing it to offer its services in Singapore.
American retail users still have access to CFTC-regulated cryptocurrency derivatives trading as well as its UpDown Options offering, which allows users to open long or short trading positions based on future movements of various cryptocurrencies.
While the suspension of Crypto.com’s institutional exchange service in the U.S. might raise concerns, it should be noted that other platforms continue to operate in the country and the cryptocurrency ecosystem is constantly evolving. It is crucial for both investors and enthusiasts to stay informed about ongoing developments and changes in the industry. In the end, the main conflict emanating from this news is between the push for innovation and adoption in the blockchain sector and the ever-growing scrutiny from regulatory bodies, which could have long-lasting effects on the future of cryptocurrency markets.
Source: Cointelegraph
