Bakkt, a crypto custody service that includes an app where consumers can view assets and conduct transactions, has announced the closure of its consumer-facing app as regulatory scrutiny increases.
on a monday Press releaseThe digital asset company said it is shutting down its consumer-oriented app to focus on business-to-business (B2B) technology services.
The company said that the app will officially shut down on March 16, and that current users will have access to all of their crypto and cash on the Bakkt platform through a new web experience. Bakkt CEO Gavin Michael said in a statement:
“As we continue to gain traction with our B2B2C strategy, we remain focused on providing our partners and customers with seamless solutions that meet their needs. The closure of the app ensures that we are supporting our partners and customers’ relationships with their customers.”
Bakkt said it plans to capitalize on its B2B proposition on the back of its planned acquisition of crypto trading infrastructure firm Apex Crypto. Apex Crypto provides security and liquidity while integrating crypto products on a single platform. The platform reportedly has over 30 signed fintech partners, serving over 5 million customers.
Regulators are cracking down on crypto firms
With more and more crypto companies moving away from consumer-facing products amid growing regulatory scrutiny, Bakkt has announced measures aimed at promoting consumer protection.
Specifically, the collapse of FTX, which was once the world’s third largest cryptocurrency exchange filed for bankruptcy in November last year and caused billions in losses to retail customers, drawing the ire of regulators around the world.
The White House in late January Detailed It plans to address potential risks from cryptocurrencies in a roadmap that calls on officials to “ramp up enforcement where appropriate” and Congress to “step up its efforts” to regulate the industry.
Specifically, the government asked Congress to step up efforts to regulate the crypto market. “Congress should expand regulators’ powers to prevent abuses of client assets—which harm investors and distort prices—and reduce conflicts of interest,” the Biden administration said in the post.
Last week, SEC Signed an agreement with crypto exchange Kraken To stop offering staking services or programs to customers in the country and pay $30 million to settle allegations of breaking agency rules.
According to the SEC, Kraken “failed to register the offering and sale of its cryptoasset staking-as-a-service program,” which the commission now qualifies as securities.
And more recently, the agency revealed it intends to sue stablecoin issuer Paxos, the company behind the latter’s stablecoin Pax Dollar (USDP) and Binance USD (BUSD) tokens.
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