Crypto.com’s Undisclosed Trading Operations Raise Concerns
According to a report by Financial Times, Crypto.com, a leading global crypto marketplace, operates proprietary trading and market-making teams.
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The existence of Crypto.com’s internal traders, unknown since the platform’s launch in 2016, contradicts the company’s earlier claims of non-involvement in trading. However, Crypto.com now has acknowledged its internal market maker, asserting that it operates similarly to third-party market makers, ensuring tight spreads and efficient markets on the platform.
Despite the company’s statements, concerns have arisen regarding potential conflicts of interest and regulatory scrutiny. US regulators have already taken action against similar activities at other digital asset exchanges, such as the recent charges filed by the Securities and Exchange Commission against Binance, the world’s largest crypto exchange, for alleged manipulative trading practices.
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