Crypto exchange Coinbase has denied engaging in proprietary trading after the New York Attorney General said that nearly 20 percent of transactions on its platform was attributable to the company. The company will not further trade for its own advantage on a proprietary basis which is a firm invests for its own gain rather than on behalf of its customer.
The news came from Coinbase’s Chief Policy Officer Mike Lempres where he stated that the company will not engage in proprietary trading as it comes after the New York Attorney General released the “Virtual Markets Integrity Report.” The report highlighted problems over the present cryptocurrency trading situation. It also raised issues over platforms’ capability to stop an illegal trading activity and guard customers’ funds. He further added that all the transactions are performed on behalf of clients who use the firm’s Coinbase Consumer service.
New York’s attorney general even warned stating that those numerous virtual currency platforms do not have the important policies and processes to safeguard the justice, honesty and safety of their exchanges.
Attorney’s general report further stated that crypto exchange Coinbase has welcomed the misunderstandings and will keep working with regulators. The company also mentioned in the statement adding that it willingly giving details in the report, a spokesperson said to Bloomberg.
On the other hand, regulators internationally have been taking a closer look at the cryptocurrency industry. Recent CNBC report stated that the U.K. lawmakers pointed out stating that the “Wild West” of crypto-assets such as Bitcoin should be regulated to protect consumers from volatile prices and hacking. For this, a strong regulation must be introduced.
Crypto exchange Coinbase has been providing an easy-to-use customer experience, besides refusing proprietary trading. It assesses that the government plans crypto-asset growth should be encouraged, and then a suitable and balanced regulation could see a country like the UK to become a global center for this activity. As stated in the Independent, at least regulation must be addressed for the protection of the users and anti-money laundering.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]