Singapore-based cryptocurrency exchange Crypto.com halts US institutional division, citing limited demand for its services. The company’s move reflects the challenges faced by crypto platforms in gaining traction within the institutional market in the United States. Crypto.com has revealed its intention to halt services for institutional traders in the United States, effective from June 21, 2023. This move highlights the challenges faced by crypto platforms in gaining traction within the institutional market in the country.
In a press release issued on Friday, Crypto.com announced its plan. The decision came after a careful evaluation of market dynamics and feedback from its institutional client base, leading the company to conclude that the demand for its services among institutional investors in the US was below expectations.
Crypto.com to Discontinue US Institutional Services
Crypto.com, a prominent Singapore-based cryptocurrency exchange with a user base of 80 million worldwide, revealed its decision on Friday to discontinue its institutional offering in the United States. The exchange confirmed that its US institutional services would be terminated on June 21 and assured that all institutional partners had been duly informed of the impending closure.
Crypto.com, known for its range of crypto-related services, including trading, lending, and staking, had launched its US institutional division with high hopes of attracting significant interest from institutional players. However, despite its efforts, the division failed to gain the anticipated traction, prompting the company to reevaluate its strategy.
Kris Marszalek, CEO of Crypto.com, explained, “While our retail business in the US has been thriving, the institutional division did not meet our growth expectations. We believe it is crucial to focus our resources and efforts on areas that have demonstrated stronger demand and better alignment with our long-term goals.”
According to a report from Bitcoin.com News, Crypto.com has confirmed that its retail services will remain unaffected while announcing the discontinuation of its institutional offering in the United States. The decision, attributed to “limited demand” within the current market landscape, comes amid ongoing lawsuits by the US Securities and Exchange Commission (SEC) against Binance and Coinbase.
Crypto.com Affirms Naming Rights for Crypto.com Arena in LA Unaffected
In a conversation with ESPN, a spokesperson from Crypto.com assured Dave McMenamin, a staff reporter at the media firm, that the recent decision to halt US institutional services would not have any impact on the naming rights for Crypto.com Arena in Los Angeles. Crypto.com expressed full confidence in the ongoing success of its unique market-differentiating capabilities and offerings, stating that it would continue to provide all other regulated services in the markets where it operates, as conveyed to ESPN.
Crypto.com, while underlining the potential for a resurgence of its US institutional division, recently announced a strategic partnership with Coinroutes aimed at bolstering institutional access to liquidity in the digital assets market. This move follows Crypto.com’s acquisition of a significant payment institution license from the Monetary Authority of Singapore (MAS) as part of its ongoing efforts to expand its regulatory framework.
In conclusion, Singapore-based Crypto.com halts US institutional division in the United States due to limited demand. The move reflects the challenges faced by crypto platforms in gaining institutional adoption in the country. The company aims to streamline its operations and focus on expanding its retail presence and consumer-oriented services. While the decision aligns with recent regulatory developments and lawsuits in the crypto industry, Crypto.com remains optimistic about its future prospects.
By exploring new opportunities, forging strategic partnerships, and maintaining regulatory compliance, Crypto.com aims to position itself for sustained growth and success in the rapidly evolving crypto market.
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