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Crypto-friendly banking crises have put Crypto.com in trouble in being able to maintain On-Ramp fiats. The crypto-exchange may soon lose its ability to accept USD deposits.
Crypto.com and the difficulties in maintaining On-Ramp Fiat
According to reports, Crypto.com may face serious difficulties in maintaining On-Ramp Fiat due to the crises that are occurring in the banking sector vis-à-vis cryptocurrencies.
In practice, the crypto-exchange may soon lose its ability to accept USD deposits due to its banking partners. This would, in turn, lead to concerns about the liquidity of the crypto-exchange.
Indeed, a crypto exchange that fails to serve most cryptocurrency exchange pairs that are denominated in USD could be rated as less liquid.
Not only that, Crypto.com is currently able to provide euro-denominated banking services to users in the European Economic Area (EEA).
Even here, however, the crypto-exchange had to scramble to find a new banking partner after its previous provider had its accounts blocked by the Central Bank of Lithuania.
In this regard, a spokesperson for Crypto.com reportedly stated the following:
“Our euro fiat wallet service provider has recently reduced access to EEA residents through the SEPA (Single Euro Area) system. Since the purpose of SEPA is to facilitate local borderless transfers between network participants within the EEA, EUR deposits/withdrawals through this service provider are not available to those outside the EEA.”
Crypto.com and problems with banking partners in the U.S.
Crypto.com’s main problem is thus based on its turbulent relations with crypto-friendly banking partners.
And indeed, Crypto.com had to join the list of crypto exchanges that recently distanced themselves from Silvergate Bank after the bank failed to file its 10-K report with the U.S. SEC.
A way of distancing itself just as Silvergate Bank began to collapse, raising doubts about its solvency.
Not only that, in January Metropolitan Commercial Bank, another Crypto.com banking partner, also said it would exit the cryptocurrency industry, following a review by its board of directors.
At present, then, Crypto.com is in the position of offering its users the ability to purchase cryptocurrencies via credit card, and in September it began waiving fees for new users for the first week.
Cronos (CRO): in price dump of 15 percent in last 7 days
Just like most cryptocurrencies, also Cronos (CRO), Crypto.com’s exchange token, has experienced a price dump in the past 7 days.
And, at the time of writing, CRO is worth $0.062, a 15 percent dump from last week’s $0.073.
Despite problems with its banking partners, CRO has a trading balance of $3.6 billion and a stablecoin balance of $776 million. It also recorded a positive net flow of $248.8 million in the last week.
The 33rd crypto by market capitalization, it still holds a total market cap of $1.5 billion. Not only that, its dominance in the crypto market is 0.17 percent.