Bitcoin exchange Crypto.com has announced that it will shut down its institutional exchange service for US customers due to limited demand. The closure will take effect on June 21, 2023. The exchange’s decision was likely influenced by recent legal actions against Binance and Coinbase. Because we are at a time when regulatory concerns in the US market are at their peak. Here are the details…
Important announcement from the Bitcoin exchange
The company explained in a statement that the lack of demand from US institutions led to its decision to suspend Crypto.com Exchange’s institutional offering. Affected corporate users have been given advance notice to support a smooth transition. It’s important to note that this closing did not affect the exchange’s retail trading practice, which includes UpDown Options, a crypto derivatives product regulated by the Commodity Futures Trading Commission (CFTC). The company also emphasized that it may reopen its corporate trading platform in the future. However, he declined to provide further details on the conditions that had to be met in order to reopen its doors.
Despite this setback, Crypto.com has licensed a major payment institution from the Monetary Authority of Singapore (MAS), allowing the company to expand its crypto payment services to customers in Singapore. This comes almost a year after the crypto company received principle approval from the central bank. The announcement of the license on June 1 coincided with Hong Kong’s decision to allow retail traders to trade cryptoassets. However, regulators in Hong Kong have required crypto exchanges to obtain a license from the Securities and Futures Commission (SFC) before selling and marketing to Hong Kong customers.
Crypto.com Teams Up With CoinRoute
While only two exchanges, HashKey PRO and OSL, have been licensed so far, Huobi has turned to SFC to offer its services in Hong Kong. OKX said it will offer crypto trading to Hong Kong residents through its app. On the other hand, the Singapore-based exchange announced that it has formed a strategic partnership with CoinRoutes to increase institutional access to liquidity in the crypto-assets market. The integration will provide a smoother trading experience for institutional investors and enable them to access Crypto.com’s liquidity and trading pairs through CoinRoutes’ platform.
The company explained in a statement that this partnership will enable institutional investors to access a wider range of trading pairs and liquidity across multiple exchanges, ultimately providing a more efficient trading experience. Algorithmic trading solutions provider CoinRoutes will enable Crypto.com to offer best-practice pricing for institutional clients as they navigate the fragmented crypto-asset market. Talking about the partnership, Bobby Ong, co-founder and COO of CoinGecko, said, “Crypto.com will be able to provide a better trading experience for its institutional clients by leveraging CoinRoutes’ best practice technology.”
