Crypto.com gives week deadline for users in excluded countries to repay their loans and the decision came within a month of BlockFi’s $100 million penalties for the lending products so let’s read further in today’s latest cryptocurrency news.
Many speculated that the regulatory clampdown will be the main reason behind the decision. Crypto.com gives week of deadline for users in restricted countries to repay the loans until March 15. The company updated the list of restricted countries to include the US, UK, and others. The users from European nations like Switzerland, Germany, and the UK shared emails from the company regarding the loan closure date. It is worth noting that some of the users that don’t have crypto loans on the platform still got the email.
According to the new policy, if the users fail to repay the loans, the collateral will be sold and loan positions will be closed by the exchange. The sudden policy change left the exchange users anguished and in disbelief with most claiming that the exchange’s recent splurge on the ads and marketing started to take the toll on the balance sheet. The aggressive marketing splurge over the past year raised most eyebrows but still hasn’t raised much capital from investors.
Crypto.com’s marketing budget included millions being spent on celebrity endorsements and much more which were a topic of discussion on the internet for quite some time. The sudden change in the lending policy only made this theory much more enhanced. The lending products were under regulatory scanner for over a year with a few crypto companies getting a security violation notice from state regulators. Celsius and Gemini offered lending products that came under US SEC investigation while BlockFi got a $100 million penalty for offering unregistered lending products.
As recently reported, The crypto.com CRO rebranded as the token of the crypto.com exchange changed its name to Cronos which is a well-known ecosystem already. The token that is native to the Crypto.org and Cronos EVM chains will not see its ticker symbol nor its mechanics change. The platform announced the rebranding in a medium blog earlier today and said that the new name is meant to reflect the decentralization of the coin and the huge growth of the Cronos ecosystem.