Crypto.com has become the latest crypto exchange to wind down its institutional service for US clients due to limited demand. This move follows other industry players like Coinbase and Binance that have reduced or ceased operations in the US due to the increasingly hostile regulatory environment created by the SEC. With the recent appointment of Gary Gensler as the SEC Chair, the agency has taken an aggressive approach towards crypto, suing these exchanges in recent weeks. Observers predict that these lawsuits could potentially reach the US Supreme Court and lead to congressional actions on crypto regulation. Some believe that the SEC’s actions are potentially bullish for crypto, while others predict that this could cause crypto businesses to leave the US and seek more accommodating jurisdictions abroad.
In a separate development, a group of scammers hacked eight Twitter accounts belonging to figures in the crypto space, with the aim of promoting phishing scams. They have stolen almost $1 million worth of crypto so far. Twitter Support faced criticism for its slow response times, which allowed the phishing tweets to remain up for many hours and even days. Experts recommend that users should use security keys instead of SMS-based two-factor authentication to avoid similar scams.
Despite these challenges, Crypto.com’s retail app, which has over 80 million users, will continue to operate as normal. However, other exchanges such as Galaxy Digital, Nexo, and Paxo plan to leave the US for regulatory reasons. Crypto investors and traders will be closely watching developments in the coming weeks as the industry navigates an increasingly complex regulatory environment.