The American crypto industry met with another setback today as Crypto.com announced plans to wind down its institutional service. The exchange is the latest company to make an exit from the United States as Gary Gensler’s Securities and Exchange Commission (SEC) comes knocking on doors.
Crypto.com has announced that it will cease its institutional service for American clients from June 21. The platform blamed “limited demand from institutions in the US in the current market landscape.”
An institutional investor is a large organization that invests on behalf of others, such as pension funds or mutual funds. On the other hand, a retail investor refers to an individual who invests their own personal funds.
In a statement shared with Decrypt, Crypto.com said that “impacted institutional users were given advance notice to support a smooth transition.”
Barring unforeseen developments, the Crypto.com retail app, which more than 80 million people use, will continue operating as normal.
The regulatory environment is harsh. In recent months, multiple crypto firms have said they are reducing or ceasing their activity in the United States. Most cite the increasingly hostile tenor of rulemaking and enforcement. Gary Gensler’s SEC is the main culprit.
Earlier this week, the SEC announced two legal suits against Coinbase and Binance, the two largest crypto exchanges on the planet. Coinbase has already said it plans to relocate out of the country.
Galaxy Digital, as well as Nexo and Paxo, two other exchanges, also plan to leave for regulatory reasons. Departing businesses are being actively lured by other jurisdictions around the world, aiming to profit at the expense of the US.
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