The crypto market continues to experience a decline in cumulative volume, and recent developments aren’t helping. Decreasing investor interest and uncertainties about Binance‘s future in the U.S. have led to a significant hit on the market. Today, another exchange announced a limitation on its services in the country, suggesting that Bitcoin’s price might continue on a negative trend.
Crypto Exchange Withdraws from Country
Starting from June 21, Cryptocom exchange announced it would suspend its corporate swap service in America. The Singapore-based crypto exchange cited limited demand from corporate clients and current market conditions as the reasons behind this decision. It was noted in the announcement from the exchange that corporate users of the platform were given prior notification about the suspension of service.
The exchange’s mobile app that serves individual investors remains accessible in the U.S., and no steps are to be taken back in this regard. American individual investors can access the UpDown Options offer, which allows users to open long or short buying and selling positions on the future movements of various cryptocurrencies, alongside crypto derivative trading regulated by the CFTC.
Corporate Demand in Danger
For the moment, it appears that the bravery of institutions has been shattered due to regulatory uncertainties. Even Coinbase, the country’s first publicly traded crypto exchange, is struggling with the securities regulator. The U.S.’s regulatory pressure on the sector increased about eight months after the collapse of FTX, and the investigations neglected on FTX are now being conducted for the remaining crypto exchanges.
Coinbase is taking various steps in response to the pressure in the country. They are launching advertising campaigns, lobbying activities, training, and panels. However, the collapse of FTX significantly affected the view of a significant portion of politicians on crypto. Democrats, assuming that customers who lost billions of dollars are hostile to crypto, are turning this into political propaganda.
The SEC is currently trying to control the sector by going after the top two exchanges, as it cannot handle the burden of cases specifically regarding altcoins. The other day, the chairman of the CFTC mentioned his concern about “cryptocurrencies rising again” and said they needed to act quickly. However, the requested 10% increase in the CFTC budget has not yet been approved.
Regulators are currently able to exert limited pressure on the industry as they do not have sufficient manpower.
