Home / News / Crypto / News / Crypto.com Makes Moves in Dubai, Adds New Products and Bolsters CRO Price — What’s Behind the Revival?
News
5 min read

Crypto.com Makes Moves in Dubai, Adds New Products and Bolsters CRO Price — What’s Behind the Revival?

Last Updated November 14, 2023 2:15 PM
Teuta Franjkovic
Last Updated November 14, 2023 2:15 PM

Key Takeaways

  • Crypto.com launched Strike Options, a binary options trading feature within its app.
  • The exchange has recently obtained a license to conduct specified virtual asset service activities in Dubai.
  • It also halted institutional services in the U.S. due to ‘challenging market conditions’.

Crypto.com has introduced a new product  that emulates the characteristics of binary options trading, offering the prospect of earning predetermined amounts contingent on cryptocurrency prices at specific time intervals.

Strike Options service, a novel derivatives trading feature within its app, allows users in the United States to engage in short-term, binary options to speculate on cryptocurrency prices.

Simplifying Derivatives Trading

This recent addition to the Crypto.com trading portfolio is designed for individuals seeking to forecast and potentially capitalize on movements in token prices.

Strike Options  functions within a binary framework, prompting users to determine whether the price of an underlying asset, such as Bitcoin (BTC), will exceed a predetermined strike price at the point of expiration.

Simplified derivatives trading involves a straightforward ‘Yes/No’ choice, streamlining the process. ‘Yes’ reflects confidence in a potential price increase, while ‘No’ anticipates a decrease. Users can exit positions early for risk management or profit securing.

The contracts within this product have a fixed duration of 20 minutes, with an entry threshold set at $10. However, it’s emphasized that the accessibility of this product should not overshadow the inherent risks associated with rapid and leveraged trading.

Furthermore, Strike Options offer opportunities in diverse market conditions, enabling users to speculate on both upward and downward trends.

Currently, this Commodity Futures Trading Commission (CFTC)-regulated product is applicable to Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH), with plans for an expanded asset base in the future.

Last Steps In Licensing Virtual Asset Services In Dubai

Recently, Crypto.com disclosed that it has obtained a license  to conduct specified virtual asset service activities in Dubai. The granted license pertains to its Dubai entity, CRO DAX Middle East FZE, which had previously received a Minimal Viable Product (MVP) preparatory approval from Dubai’s Virtual Assets Regulatory Authority (VARA) in March.

The licensing process involves three stages: a provisional permit, a preparatory license, and an operating license. Crypto.com is presently in the third stage of the process, with the caveat that it must fulfill localization requirements and meet specific conditions before commencing operations.

The exchange aims to secure operational authorization for a range of services, including exchange, broker-dealer, management, investment, lending, and borrowing services. Having obtained regulatory approvals in Singapore, the exchange has also made progress in the Netherlands, U.K., France, and Brazil. However, challenges include workforce reductions and difficulties in maintaining fiat on-ramps during the recent banking crisis.

In February 2023, Dubai mandated that crypto firms obtain authorization and relevant licenses to operate. Laser Digital, the digital asset subsidiary of financial services giant Nomura, has recently obtained an operating permit.

Halting Institutional Services In The U.S.

In June, Crypto.com revealed its decision to discontinue serving institutional clients in the U.S., officially suspending the service from June 21 onwards. The exchange attributed the move primarily to limited demand from institutional customers, further exacerbated by challenging market conditions.

According to a statement from Crypto.com, the platform provided advance notice to its institutional users regarding the decision to suspend the service. It’s important to note that Crypto.com’s retail mobile application and platform continue to operate without interruption in the United States.

CRO Witnesses Significant Price Surge

CRO has undergone a notable price surge, surpassing previous resistance levels and currently hovering  around $0.08. The 50-day Exponential Moving Average (EMA) at $0.0631 suggests a robust bullish trend, with the price comfortably above this level in the short term.

However, caution is advised as the Relative Strength Index (RSI) stands high at 97.46, entering the overbought territory. This could signal a potential retracement or consolidation, indicating a perceived overvaluation.

It will be interesting to see how this dynamic exchange will continue its innovations and expansion of its offerings. Investors should keep an eye on this exchange as it continues to grow and evolve.

Was this Article helpful? Yes No