Crypto.com's Trading Team Under Scrutiny: FT Report

Crypto.com's Trading Team Under Scrutiny: FT Report
Crypto.com's team engages in token trading for profit, as per a report in the Financial Times today. The Singapore-based cryptocurrency exchange allegedly operates proprietary trading and market making teams, as disclosed by five undisclosed sources with direct knowledge of the company's trading desk.

However, Crypto.com refuted the Financial Times' claim, stating that it does not rely on proprietary trading as a revenue source. The exchange emphasized that having an internal market maker is not a controversial practice. 

In response to Decrypt's inquiry, Crypto.com clarified that while they do engage in market making activity, such as having internal market makers for their CFTC-regulated product Up/Downs in the United States, this activity adheres to regulated practices. They emphasized the importance of a level playing field where all market makers must follow the same ruleset to ensure market fairness and integrity.

Crypto.com functions as a platform enabling clients to buy and sell cryptocurrencies, while also providing them with a Visa debit card for spending digital assets.

The Financial Times report has raised concerns about potential conflicts of interest within the industry, especially as American regulators intensify their scrutiny of major exchanges like Binance and Coinbase. Both Binance and Coinbase have recently faced lawsuits from the U.S. Securities and Exchange Commission.

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