Following the announcement of the service's suspension on June 21st, Crypto.com will no longer provide institutional clients with services in the United States.
The Singapore-based cryptocurrency exchange claimed the lack of institutional demand as the main driver for the decision, which was made worse by market testing.
According to a statement from Crypto.com, institutional users of the site were informed in advance that the service will be suspended. The U.S. retail mobile platform and application for Crypto.com are still fully functional.
CFTC-regulated cryptocurrency derivatives trading is still available to American retail users, as is the exchange's UpDown Options product, which enables users to create long or short trading positions on potential future movements of different cryptocurrencies.
The possibility of relaunching its institutional exchange in the United States is still on the table for Crypto.com.
The Monetary Authority of Singapore has granted Crypto.com an official large payment institution license for digital payment token services, enabling it to provide its services there even while it shutters its institutional U.S. business.
The month of June 2023 has proven to be turbulent for American cryptocurrency exchanges. The Securities and Exchange Commission (SEC) started legal action against both Binance.US and Coinbase for a variety of alleged breaches of the securities laws.
The broader cryptocurrency ecosystem has responded to the SEC's activities as the SEC appears to be tightening its regulatory oversight of the sector eight months after the collapse of FTX.