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Crypto.com to wind down U.S. institutional client business on June 21

Crypto.com has pointed to low demand as the reason for the decision.

Donovan Erskine

June 9, 2023 2:10 PM

Crypto.com

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The streak of bad news is showing no signs of slowing down, as Crypto.com is the latest exchange to make headlines. The Singapore-based company has announced that it will end institutional client business in the United States in a couple of weeks.

According to a statement made to Decrypt, Crypto.com states that this change is the result of "limited demand from institutions in the U.S. in the current market landscape." The company also added that “This decision regarding the Crypto.com exchange business in the U.S. does not impact our Crypto.com retail app used by more than 80 million users worldwide in any way.”

Ironically, Crypto.com signed a massive deal to take over the naming rights of the Lakers stadium in Los Angeles in 2021. Despite this week’s news, a report from ABC states that Crypto.com’s winding down of its US client business is not expected to impact the naming rights to the stadium.

This of course comes after some bad news for a handful of other major players in the crypto space. In just the last week, the SEC sued both Coinbase and Binance over shady business operations. FTX kicked things off last year when the cryptocurrency exchange collapsed, which had a reverberating effect on others in the business. Earlier this year, Crypto.com laid off 20 percent of its workforce.

The recent run of bad news for the crypto industry’s biggest companies surely hasn’t done anything to quell the existing concerns about the tech and its implementation. We’ll continue to monitor the most biggest stories in cryptocurrency as the landscape continues to evolve.

Donovan Erskine

News Editor

Donovan is a young journalist from Maryland, who likes to game. His oldest gaming memory is playing Pajama Sam on his mom's desktop during weekends. Pokémon Emerald, Halo 2, and the original Star Wars Battlefront 2 were some of the most influential titles in awakening his love for video games. After interning for Shacknews throughout college, Donovan graduated from Bowie State University in 2020 with a major in broadcast journalism and joined the team full-time. He is a huge Scream nerd and film fanatic that will talk with you about movies and games all day. You can follow him on twitter @Donimals_