The popular crypto exchange app Crypto.com has withdrawn loan offerings and has given a 1-week deadline for account holders to close their loans, otherwise the platform will be the one to liquidate the assets. An email was sent to select Crypto.com account holders around the world last March 9, 2022, in regards to new rules with their lending services and has enforced the deadline for all lenders in select countries to complete their loans before March 15, 2022.
The email states: ‘Please be informed that Lending is no longer supported in your jurisdiction. For this reason, we are required to cancel your current loans’. This means that all active loans in excluded countries must be settled or they will be sold or closed as collateral on the platform.
However, reports by CoinDesk have said that even people who do not have lending accounts with the platform still received the email. Upon attempts to reach out for a comment, Crypto.com or any of its representatives did not offer additional statements.
As of now, there are 40 countries listed in the official announcement on the Crypto.com website. The list was posted and updated on March 10 and includes the following countries on the list of excluded jurisdictions:
- American Samoa
- Antigua & Barbuda
- Czech Republic
- French Guiana
- French Polynesia
- Hong Kong
- New Caledonia
- People’s Republic of China
- Saint Lucia
- Saint Martin
- Sint Maarten
- St. Pierre & Miquelon
- United Kingdom
- United States
The announcement through the website has also enforced that the list may change over time depending on the discretion of the company. It will be likely based on regulation rules in select countries around the world.
The new restrictions have also prompted account holders to believe that the platform could potentially be spending too much on marketing and partnerships instead of dealing with the company’s loans and affairs.
As of now, there are no updates whether these new regulations on Crypto.com’s lending services are permanent or if they will be restored in the future. However, the platform’s account holders are still free to enjoy the other services offered by the platform.
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