Key Takeaways:
- Crypto.com token Cronos (CRO) approaches a year low.
- The exchange could face scrutiny from the US SEC.
- Will international approvals be enough to stave off trouble?
YEREVAN (CoinChapter.com) – Crypto.com exchange token Cronos (CRO) approached its year-low and reached $0.058 on June 9, after a 15% monthly loss. Notably, the resulting CRO price stood only 5% above its yearly low of $0.054 on Dec 2022.
Moreover, the token could lose more altitude in the coming months if it faces a lawsuit. In detail, the US Securities and Exchange Commission (SEC) cracked down on the crypto sector, suing digital asset firms and exchanges in bulk in the previous quarter.
The agency also went after the two largest crypto exchanges, Binance and Coinbase. However, the SEC has not yet commented on whether crypto.com is at gunpoint.
Why would crypto.com be under scrutiny?
Considering the SEC’s determination to eradicate as much crypto trading as possible, crypto.com could be next. Notably, the Hong Kong-based exchange, with over 80 million users, joined the US market in March 2022 and offers US users over 250 cryptocurrencies to choose from.
The SEC’s lawsuit against Binance contained a specific list of cryptocurrencies, which the agency deemed unregistered securities. The list included Solana (SOL), Cardano (ADA), Sandbox (SAND), Polygon (MATIC), Chiliz (CHZ), Binance coin(BNB), Decentraland (Mana), Algorand (ALGO), and others.
All the mentioned tokens are currently available on the crypto.com platform, and it offers staking services for a number of them. Thus, a laser point on crypto.com’s head is a likely possibility.
Crypto.com allegedly supported Binance
Furthermore, on June 8, a large Crypto.com account sent funds to Binance in a large enough transaction to raise suspicions. According to a report by Arkham Intel, the user transferred 30,000 ETH, worth over $55 million, at the current price of $1,800 a coin.
Moreover, the user also sent $10 million in Tether (USDT) through the Polygon network. Arkham also noted that the said account is a frequent depositor from gate.io and crypto.com. While transactions from one exchange to another are not uncommon, the sector’s heightened scrutiny frowns on coincidences.
This has led to concerns about the future of Crypto.com and whether it may face a fate similar to that of Coinbase and Binance.
The exchange has enjoyed regulatory approval so far
The exchange does not have tight connections with the US SEC. However, it has several governmental approvals globally. Currently, crypto.com has regulatory approvals of its operations in Italy, Singapore, Argentina, the United Kingdom, Brazil, France, Japan, and Canada.
Additionally, the exchange got several certifications, such as SOC 2, a voluntary compliance standard for service organizations in the US. Crypto.com also got ISO 22301, a certificate proving that a company has met the requirements of the standard, as well as the company’s commitment to business continuity.
Also read: How do crypto exchanges register with the SEC? They can’t! Coinbase & Robinhood tried.
The presence of the noted certificates does not guarantee lenience from the SEC. However, the acquisition of such regulatory approvals could play a part in crypto.com’s future.
