One of the largest crypto exchanges sent out worrying news to loan customers who are on the excluded country list.
Several crypto exchanges have attempted to expand their services on a global scale, and abide by regulations to operate locally. However, recently, platforms offering lending services have been under a lot of scrutinies by authorities like the Securities and Exchange Commission (SEC).
On March 8th, multiple Crypto.com users received alarming letters from the crypto exchange, telling them that the Crypto Credit loans will not be available in their jurisdiction. As a result, all customers were given until 15 March 2022 to pay off their loans. If users won't pay until the end of the given period, the exchange will sell off their collateral.
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Not long after the emails were sent out, users noticed an updated article published in the lending section of the Crypto.com blog. According to the publication, 41 countries are now blacklisted from using the exchange’s lending services. The list includes the United States, UK, and even Singapore, which is where the Crypto.com headquarters are located.
Several users on social media speculated that the decision was made due to regulatory scrutiny on crypto exchanges over the past months. Just last year, Coinbase and BlockFi were investigated by the SEC due to their high-yield staking services and were forced to close these operations.
Other sources claim that the Singapore-based exchange has been struggling to keep its finances in check due to spending a huge portion of its funds on advertisement campaigns such as acquiring the naming rights for the Staples Center and purchasing advertisement spots at the Super Bowl.
In late January, other popular crypto exchanges in the United States such as Gemini, Celsius Network, and Voyager digital were being scrutinized by the SEC for their high-yield lending services.
