Crypto.com Blamed For Controversial Trade Practice
According to rumours, crypto trading site Crypto.com has deployed internal teams to trade tokens for profit in the latest indicator of a potential dispute.
According to five sources familiar with the situation, the Singapore-based exchange, which is also one of the top-10 crypto trading marketplaces, operates proprietary trading as well as market-making teams.
In most markets, market-making and prop trading are carried out by independent private organisations. Furthermore, the exchanges here connect buyers and sellers at the most competitive and transparent pricing.
The US regulators have been clamping down on exchanges that support internal market-making activities. Binance was charged with manipulative trading and Crypto.com was accused of asking employees to “say there is no internal market maker type operation”. The SEC Chair Gary Gensler said these exchanges are commingling functions, unlike the New York Stock Exchange which does not operate a hedge fund.
(With inputs from Shikha Singh)
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