Crypto.com has announced the closure of its institutional service for clients in the United States.
The winding down of the institutional service will not impact Crypto.com's retail app
Crypto.com has announced the closure of its institutional service for clients in the United States. The decision, effective June 21, is attributed to the limited demand from American institutions in the current market landscape. The winding down of the institutional service will not impact Crypto.com's retail app, which is used by over 80 million users globally. The company, known for its prominent presence in the crypto industry and even featuring actor Matt Damon in a commercial, previously reduced its global workforce by 20% in January. This development comes amid a challenging environment for crypto companies in the United States, with the recent legal actions by the Securities and Exchange Commission (SEC).
The SEC's crackdown and the remarks made by Chairman Gary Gensler, expressing skepticism towards digital assets as unregistered securities, have contributed to the increasing difficulty faced by crypto companies operating in the United States. However, Crypto.com's decision to close its institutional service is driven primarily by the lack of demand from American institutions rather than regulatory concerns. The company continues to provide its clients with the ability to buy, sell and spend cryptocurrencies using its platform, including offering a Visa debit card for digital asset transactions.
