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Crypto.com Struggles to Maintain Fiat On-Ramps in the Face of Crypto Banking Crisis
The exchange’s current banking partner is only accessible to users based in the European Economic Area (EEA).
The digital assets industry is in the middle of a banking crisis with the collapse of crypto-friendly Silvergate Bank, and Crypto.com hasn’t been spared.
The Singapore-headquartered exchange is only now able to provide euro-denominated banking services to users in the European Economic Area (EEA), having previously lost the ability to accept U.S. dollar (USD) deposits because of issues with its banking partners.
For any crypto exchange, maintaining adequate fiat off-ramps is key to ensuring liquidity and impacts the ability for digital asset prices to rise. Market analysts attributed a 10% correction in bitcoin prices in January to Binance halting USD transfers.
An exchange that only has the ability to service users in one part of the world, and then in euros, a far less liquid currency for crypto (most crypto trading pairs are denominated in USD), is going to have questions raised about its liquidity.
“Our EUR fiat wallet service provider recently reduced access to EEA residents via the single euro [payments area (SEPA) system],” a spokesperson for Crypto.com told CoinDesk.
“As SEPA’s intended purpose is to facilitate local borderless transfers between network participants within EEA, the EUR deposits/withdrawals via this service provider are not available to those not residing in the EEA,” the spokesperson added.