Crypto.com Enhances Liquidity with Internal Market Maker, Denies Unfair Advantage

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Cryptocurrency exchange Crypto.com is establishing an internal market-making team as it expands into prediction markets. The company states this move is fully compliant with regulations and aims to boost liquidity, even as the role of market-making in outcome-based trading faces increased scrutiny.

A Tuesday report from Bloomberg highlighted the exchange’s recruitment for a “quant trader” role on its market-making desk. This position would involve buying and selling contracts tied to sports event outcomes on Crypto.com‘s prediction platform.

This development has brought focus to the model of exchanges facilitating trades against customer orders, a structure that can prompt conflict-of-interest concerns as prediction markets grow in crypto and traditional finance.

In a statement, a Crypto.com spokesperson confirmed the internal trading team is fully disclosed to the US Commodity Futures Trading Commission and operates within its North American derivatives business. The spokesperson emphasized that more competition and liquidity lead to a better customer experience, noting that internal and external market makers adhere to identical rules to preserve market fairness.