A report out of the Financial Times alleges that the Singapore-based Crypto.com exchange runs proprietary trading and market making teams. This is a controversial activity — though not uncommon in the crypto world — because of the conflicts of interest that are introduced when these functions are combined with those of an exchange. Speaking to CNBC about similar activities by other exchanges, US SEC chair Gary Gensler said, "These trading platforms, they call themselves exchanges, are commingling a number of functions. In traditional finance, we don't see the New York Stock Exchange also operating a hedge fund, making markets."
Sources cited by the FT allege that Crypto.com made "absolutely dramatic sworn statements that Crypto.com was in no way involved in trading" to other trading houses, and claim that employees were asked to lie about the existence of internal market makers. Crypto.com has refuted these allegations, and acknowledged that they run a market maker.
"This is not a controversial practice," Crypto.com said about the controversial practice.