CrossTower was once positioned as an institutional crypto exchange with strong credentials - but after being demoted by Wilshire Indexes in 2023, it faded into obscurity. Here's why it failed and what to use instead in 2025.
CrossTower Demoted: What Happened and What It Means for Crypto Exchanges
When an exchange like CrossTower, a crypto trading platform that once positioned itself as a regulated, institutional-grade exchange. It was known for offering fiat on-ramps, staking, and derivatives—but after losing its license and being removed from major listing directories, users were left wondering what went wrong. gets demoted, it’s not just a name change. It’s a warning sign. CrossTower’s fall wasn’t sudden. It was the result of slow-moving failures: unclear regulatory status, missing audit reports, and growing user complaints about delayed withdrawals. These aren’t random glitches. They’re systemic issues that turn a platform from trusted to risky in a matter of months.
What happened to CrossTower relates directly to other exchanges you’ve heard about—like Domitai or ARzPaya. The difference? CrossTower had legitimacy at one point. It was listed on CoinMarketCap, partnered with payment processors, and claimed to follow AML/KYC rules. But when regulators in the U.S. and Europe started cracking down on unlicensed platforms, CrossTower didn’t adapt fast enough. Instead of proving compliance, it went quiet. That’s the pattern: when an exchange stops answering questions, it’s usually because it can’t answer them. This isn’t just about one company. It’s about how crypto exchange regulation, the set of legal and operational standards that determine whether a platform can legally operate in a jurisdiction is becoming the new gatekeeper for survival. Platforms that ignore it don’t just lose users—they lose credibility, liquidity, and eventually, their entire business.
And it’s not just about rules. It’s about trust. When CrossTower was demoted, users didn’t just lose access to their accounts—they lost confidence in the whole idea of centralized trading. That’s why posts here cover exchanges like Exchangeist and NovaEx, which focus on transparency, cold storage, and clear fee structures. They’re the opposite of what happened to CrossTower. You’ll also find guides on how to spot fake exchanges, what to look for in a license, and how to verify if an exchange actually has real security. The lesson is simple: if you can’t find clear answers about who runs a platform, who audits it, or where your funds are stored, you’re already at risk. The posts below give you the tools to avoid the next CrossTower—and protect your crypto before it’s too late.