Crypto.com, a Singapore-based company, has announced that it will be closing its U.S. cryptocurrency exchange on June 21 due to the prevailing market conditions that indicate a low demand for its services. The recent regulatory crackdown by U.S. authorities on two of the world’s biggest cryptocurrency exchanges, Binance and oinbase">Coinbase, is believed to have greatly influenced the company’s decision to deprioritize and suspend its U.S. operations for the time being.
Despite the closure of its U.S. cryptocurrency exchange, Crypto.com has confirmed that its retail trading application, including UpDown Options, a regulated product for crypto derivatives under the purview of the Commodity Futures Trading Commission, will remain operational. The CFTC is one of the primary regulatory bodies that filed a lawsuit against Binance earlier this year.
Crypto.com, which boasts over 80 million users globally, highlights its “verified proof of reserves” in its marketing materials. The company gained recognition for its unique features such as providing Visa debit cards to customers, enabling them to use cryptocurrencies for their daily transactions.
Although the present regulatory climate appears unfavorable, the company has not ruled out the possibility of retaining a U.S. cryptocurrency exchange in the future. However, the feasibility of this option remains uncertain at this point.
Recently, the U.S. Securities and Exchange Commission filed lawsuits against Binance and oinbase">Coinbase. The former was charged with the sale of unregistered securities and the intermingling of customer funds, while the latter was accused of operating as an unlicensed securities exchange, brokerage, and clearing agency. The regulator has accused both companies of jeopardizing the assets of their American customers.
Several analysts suggest that the regulatory crackdown on cryptocurrency in the United States does not necessarily spell doom for the industry. According to Tim Frost, the CEO of digital wealth platform Yield App, the recent decisions by Binance to halt all fiat operations in the U.S., Crypto.com to terminate its U.S. services, and Robinhood to delist Solana, Cardano, and Polygon, could indicate that cryptocurrency markets may become increasingly indifferent to the American market.
