Coinbase Shuts it’s Claims
The largest cryptocurrency exchange in the U.S., Coinbase reacted to a report from New York Attorney General, disprove the claims that it has been dealing cryptocurrencies for its own profit.
On September 18, the Office of the Attorney General in New York delivered a 32-page report which contours the concerns over the present situation in cryptocurrency trading.
As Live Bitcoin News reported, the file highlights that further actions are required on behalf of cryptocurrency exchanges to protect investors. According to the file, “almost twenty percent of executed volume” on Coinbase, the San Francisco-based digital currency exchange, has been attributed to trading for its own profits.
The report reads:
Such high levels of proprietary trading raise serious questions about the risks customers face on those platforms.
As soon as the document came in front of the public, Mike Lempres, the Chief Policy Officer at Coinbase, denied the claims in an official blog post, explaining:
“Coinbase does not trade for the benefit of the company on a proprietary basis. In order to provide an easy-to-use customer experience, Coinbase Consumer quotes a price and then quickly fills the order from our exchange platform (Coinbase Markets). This takes advantage of the liquidity provided by the entire Coinbase ecosystem.”
Three cryptocurrency exchanges – Gate.io, Binance, and Kraken were accused of potential violation of the existing virtual currency regulations, according to the preceding report and were referred to the Department of Financial Services.
The movement comes after the Attorney General probed 13 cryptocurrency exchanges earlier this year and needed information concerning their activity.
Among the 13 venues, Binance, Huobi, Kraken, and Gate.io abstained from rendering the demanded data, claiming that they don’t function within the state of New York.
In response, the report reads:
Customers should be aware that the platforms that refused to participate in the OAG’s Initiative (Binance, Gate.io, Huobi, and Kraken) may not disclose all order types offered to certain traders, some of which could preference those traders at the expense of others, and that the trading performance of other customers on those venues could be negatively affected as a result.