Crypto.com Sponsorship May Attract SEC Probe—Exec Says It’s Worth ‘Business Loss’

Crypto.com Sponsorship May Attract Sec Probe—Exec Says It'S Worth 'Business Loss'



Crypto.com may not be the largest crypto exchange by trading volume, but it is certainly one of the most popular.

LeBron James plays on a platform named after the company, and the exchange has sponsorship deals with the Philadelphia 76ers, Formula 1 and the Ultimate Fighting Championship or UFC, among others.

All of these big-name connections have taken aim at Crypto.com's back in the United States, especially as the Securities and Exchange Commission continues its crackdown on crypto. Most recently, the agency announced that it was targeting Uniswap Labs, the developer behind one of the most popular decentralized crypto exchanges on the market. Potential litigation.

However, Crypto.com President and COO Eric Anziani said Decrypt Any attention that attracts sponsorship deals from regulators is worth it. “Being known in America means you're also known in the rest of the world,” he said in an interview at the Park Hyatt in central Paris. “And, you know, it comes with business … but I think it's critical for us to achieve our mission.

Ledger

Over the course of half an hour, in a crowded hotel lobby, Anziani also touched on the competition between spare parts, meme coins and, of course, the rules.

SEC investigation – or lack thereof

Unlike other big name exchanges Coinbase And Binance, Crypto.com managed to escape at least a public mention in either the SEC lawsuit or the settlement. “The way we operate, we have set a very strong foundation for the business,” he said Decrypt. “And we have relationships with regulators around the world, including the United States.”

Because there is no “fit-for-purpose” crypto regulation in the US, Crypto.com has to comply with the rules and regulations that govern buying companies that are well-positioned in traditional finance, he said.

But would he be willing to talk to the SEC or regulators in the US about pending or ongoing litigation? “I don't have much to comment on,” said the president of Crypto.com.

Meme coins, meme coins, meme coins

Take one look at Crypto.com's X feed, and there's post after post honoring a list of tokens like Crob Mob, Degen, or Pepe. For an exchange trying to establish itself as a legitimate financial institution in the eyes of regulators, the casino-like constant celebration Symbols It can raise eyebrows.

About Meme Coins “It's a new way for people to express themselves. “And we want to be there to provide some of that to our customers in a practical way.”

However, Anziani emphasized that unlike other platforms, Crypto.com is not fully monetized. Meme coin crazy. He added: “We've always been a bit conservative and we want to make sure we're providing something that's relevant to our community.

Competition between exchanges

It has FTX. It has fallenBinance's Changpeng Zhao is waiting. SentencingAnd the US Department of Justice Accused KuCoin and its two founders against US money laundering laws.

In response to its competitors and the recent bull market, Crypto.com has since seen a significant increase in trading volume from $100 to $200 million per day in April 2023 to nearly $3 million in early March. CoinGecko.

“There is integration,” he said. “And we've benefited from that, because we've been more conservative in our risk management practices and [have engaged] With controllers around the world.

However, Anziani doesn't want a few exchanges to have a stranglehold on the market. “At the same time, we still want people to be able to innovate,” he added. And we want newbies to come in.

Ironically, the president of Crypto.com pointed to a familiar specter that is hindering the growth of crypto companies: the lack of regulatory transparency. “We want to support those startups so they can grow, even as the cost of managing regulatory frameworks increases,” he said.

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