Crypto.com, one of the leading cryptocurrency platforms, has announced that it has temporarily suspended its US institutional exchange service due to regulatory uncertainty. The move comes amid a wave of crackdowns and lawsuits against crypto exchanges by US authorities, who have accused some of them of violating securities laws and facilitating money laundering.
Crypto.com said in a blog post that it had decided to pause its US institutional exchange service “out of an abundance of caution” and to protect its customers and partners. The service, which was launched in July 2022, allowed institutional clients to trade crypto assets on a regulated platform with high liquidity, security, and compliance standards.
Current Regulatory Turmoil to Blame for the Decision
The company said that it would continue to offer its retail exchange service, as well as its other products such as the Crypto.com Visa Card, the Crypto.com DeFi Wallet, and the Crypto.com NFT platform. It also said that it was working closely with regulators and industry associations to “advance the dialogue on crypto regulation and foster innovation”.
The crypto industry faced a severe regulatory backlash in June 2023, as the SEC launched lawsuits against two of the largest crypto exchanges in America: Binance.US and Coinbase. The agency accused both platforms of breaking securities laws by offering crypto staking services without proper registration and disclosure.
The legal action sent shockwaves through the market, causing many investors to lose confidence and sell their holdings.
The recent events have raised concerns about the security and stability of the crypto industry, as well as the need for clear and consistent regulation. Crypto enthusiasts hope that the new SEC chair Gary Gensler, who has a background in finance and blockchain technology, will provide more clarity and guidance on how crypto assets should be treated under existing laws.
However, Gensler has also warned that many crypto platforms may be violating securities laws and that he will not hesitate to take enforcement actions against them