‘Limited Demand’ in the US
As per a statement given by the firm on Friday, it cited “limited demand” from institutional clients due to the “current market landscape,” for such a decision.
Moreover, institutional users of the platform were informed beforehand that the service will be suspended.
Mobile Platform to Remain Functional
However, the US retail mobile platform as well as the application for Crypto.com are still fully functional.
As a result, retail investors won’t be impacted by the decision made. Additionally, Crypto.com is still willing to explore the idea of reopening its institutional exchange in the US.
Crypto.com Expands Operations Outside the US
Notably, the exchange has been expanding its presence globally. For example, a statement made on March 20 revealed that Crypto.com had been granted a minimal viable product (MVP) initial authorisation by the Virtual Asset Regulatory Authority (VARA) of Dubai.
Additionally, the exchange continues to grow as a result of in-principle approval for a Major Payment Institution Licence from the Monetary Authority of Singapore (MAS) and a Payment Institution Licence (EMI) from the Banco Central do Brasil, as reported by TheCoinRise in June and December of last year, respectively.
SEC Lawsuit Against Binance and Coinbase has Affected Crypto
It is noteworthy that the news comes only a few days after the SEC sued two of the crypto heavyweights, Binance and Coinbase over the accusations that the firms have violated securities laws. In particular, the SEC filed more than a dozen accusations against Binance, its US platform, and CEO Changpeng Zhao (CZ).
Even though the United States regulatory authorities are on a lawsuit rampage these days, the country’s government may face a “significant risk” of not being able to pay all of its bills as soon as this June, as reported in a May 12 assessment provided by the United States Congressional Budget Office (CBO).