While it may not be the biggest crypto exchange in terms of trading volume, Crypto.com is certainly one of the most well-known platforms.
The arena where Lebron James plays has been named after the company and it also has sponsorship deals with Formula 1, the Philadelphia 76ers, and the UFC (Ultimate Fighting Championship), amongst others.
The target
The relationship that Crypto.com has with these big names arguably put a target on its back in the United States.
This is particularly true in light of the crackdown that has been initiated by the Securities and Exchange Commission (SEC) on the crypto industry.
Most recently, Uniswap Labs, the developer of one of the leading decentralized crypto exchange in the market, was issued a notice about it being a target of potential litigation.
However, Eric Anziani, the COO and president of Crypto.com, said that the attention that their sponsorship deals may attract from regulators would be worth it.
He stated that being known in the United States means you will also be known in the rest of the world and while it comes with a tradeoff, he said that it was essential for them to achieve their mission.
SEC scrutiny
As compared to some other big crypto exchanges in the market, such as Binance and Coinbase, Crypto.com has so far managed to evade any public mention from the SEC.
The COO said that their business foundation and the way they operate is quite strong and they engage with global regulators, including those in the US.
He also added that since there is no specific crypto regulation in the US, Crypto.com has opted to adhere to the rules and regulations that apply to companies that operate in the world of traditional finance.
However, the Crypto.com president did not shed any light on whether there was any ongoing or anticipated litigation with the SEC or other US regulators.
The problems
While Crypto.com wants to establish itself as a legitimate financial institution, regulators may take notice of its celebration of casino-like tokens, such as Pepe, Degen, and Crob Mob.
Speaking of meme coins, the president said that they have become a new way for people to express themselves due to which they want to offer their clients access to them.
However, Anziani emphasized that the exchange is not cashing out on the meme coin craze completely, as opposed to other platforms.
He stated that they had taken a conservative stance and wanted to offer their community things that made sense.
The trading volume of Crypto.com has seen an increase from a year earlier. Data from CoinGecko shows that its trading volume was between $100 million and $200 million per day last year in April.
In early March this year, the trading volume on the exchange climbed to $3 billion. The issues with other exchanges have benefitted Crypto.com.
According to the COO, their conservative risk management strategies and practices have benefitted them and they have engaged with regulators globally.