- The reason they cited weak demand
- The exchange will continue to work with retail traders
- And is actively expanding to other countries
Crypto.com will stop serving institutional clients as of June 21. They cite low demand as the main reason for the decision.
The Singapore-based company added that all other products remain available. Retail customers can continue to trade cryptocurrencies on spot and derivatives, use the mobile app, and deposit and withdraw deposits.
Cryptocom has been active and promoted in the United States. They were especially fond of PR at sporting events. Before last year’s crypto-winter, the exchange spent more than $1 billion on sponsoring sports events. And even signed a 20-year deal for the rights to its arena name in Los Angeles (Cryptocom Arena). How their U.S. business will develop further remains to be seen.
Crypto.com warned U.S. institutionalists of their decision well in advance. They don’t rule out bringing the service back in the future.
The company recently received a license from the Monetary Authority of Singapore. It entitles you to a wide range of services. This includes working with institutions.
June began as a tumultuous month for U.S. cryptocurrency exchanges. The Securities and Exchange Commission (SEC) has filed lawsuits against major platforms on Binance.US and Coinbase, accusing them of multiple alleged violations.
In response, many cryptocurrency companies are urgently winding down business in the United States and seeking a new homeland.