Coinbase faces allegations by the prosecutor

Coinbase faces allegations by the prosecutor

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The Coinbase Bitcoin exchange is suspected of having carried out a not inconsiderable proportion of their trades within the staff. Now, a stock exchange official told the New York Procuratorate to clarify the matter.

Coinbase, a stock exchange on which Bitcoin and other crypto currencies can be traded, is suspected of performing trades in its own interest. Because a report from the New York prosecutor's office reveals that 20 percent of the trading volume are activities that went out of employees of the stock exchange. This now denied the allegations.

The argument revolves around an excerpt from a report for which the stock exchange has voluntarily provided data. It says:

            "Coinbase [hereby] discloses that nearly 20 percent of the executed volume on its platform can be attributed to its own trading."

Apparently, the prosecutor had confused the terms "own trading" and "proprietary trading". In the latter case, banking is the purchase or sale of goods (or securities) executed on its own account.

Conceptual confusion at Coinbase

This ultimately led the prosecutor to doubt the credibility of the crypto exchange. Therefore, the Attorney General said:

            "Such high levels of proprietary trading raise significant questions about the risks that consumers are taking on such platforms."

To clarify this misunderstanding, the Coinbase CPO responded promptly. Mike Lempres then states in a blog post:

        "Coinbase is not acting for the benefit of the company in terms of proprietary trading. To provide an easy-to-use user experience, our users can specify a price and quickly complete the order on our Exchange platform. This benefits from the high liquidity of the Coinbase ecosystem. "

In other words, according to Chief Policy Officer Lempres, the allegations are merely the result of conceptual confusion. Instead of trading for their own benefit, the crypto exchange only provides its customers with the necessary funds. Therefore, Lempres emphasizes:

            "When Coinbase trades, it does so for Coinbase's clients, not for itself."


source: https://www.btc-echo.de/coinbase-stellt-sich-vorwuerfen-der-staatsanwaltschaft/

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