Why Crypto.com is Suspending its Institutional Services in the US

Crypto.com, one of the largest crypto exchanges, has recently announced that it will be suspending its institutional services in the US. This decision was made due to the limited demand from US institutions in the current market landscape and will take effect on June 21, 2023. In this article, we will explore the reasons behind this move by Crypto.com and its impact on the wider crypto ecosystem.

The Announcement and Its Implications

On Tuesday, Crypto.com released an official statement about the suspension of its institutional offering in the US. According to the statement:

“We recently made a business decision to suspend the institutional offering of the Crypto.com Exchange in the US as of 11:59 PM on June 21, 2023 due to limited demand from US institutions in the current market landscape. Affected institutional users were notified in advance to support a smooth transition”

The statement also reassured US retail customers that the application will continue to function as usual. The move to suspend institutional services in the US is a business decision made by Crypto.com and is not related to any security concerns or regulatory issues.

Why Crypto.com is Suspending Its Institutional Services in the US

The decision to suspend institutional services in the US may be due to the reduced demand for crypto exchanges in the current market landscape. Many crypto platforms are currently facing difficulties, and June has turned out to be a challenging month for them. Both BinanceUS and Coinbase are facing legal proceedings from the US Securities and Exchange Commission (SEC) for alleged violations of securities laws.

This has caused turmoil in the wider cryptocurrency ecosystem, resulting in a significant drop in the market. In this scenario, Crypto.com may have decided to suspend its institutional services in the US as a proactive measure to avoid any potential legal issues and to focus on its retail customers.

Crypto.com Arena in Danger?

On social media, there are speculations that the decision to suspend institutional services in the US could be related to the Crypto.com arena. The arena is a sports station for the famous basketball team, the Los Angeles Lakers. The platform signed a 20-year deal worth $700 million to put its name on the arena. However, Crypto.com has reassured its fans that the suspension of institutional services in the US will have no impact on the overall business, and there will be no further impact on the stadium.

The Future of Crypto.com’s Institutional Services in the US

Crypto.com has indicated that it is open to a possible relaunch of its institutional services in the US should the situation improve in the future. This means that the decision to suspend institutional services in the US is not a permanent one, and once the market conditions improve, Crypto.com may resume its institutional services in the country.

Conclusion

Crypto.com’s decision to suspend its institutional services in the US may be a prudent move in the current market landscape. While the decision may have disappointed its institutional customers, it is a proactive measure to avoid potential legal issues and to focus on its retail customers. The move will not have any impact on the Crypto.com arena, and the company is open to a possible relaunch of its institutional services in the US if the market conditions improve in the future.