Coinbase Clarifies Statement On Trading Cryptocurrencies For Its Own Benefit
In an official statement published on Thursday, Coinbase has denied engaging in proprietary trading after the New York Attorney General said that almost 20 percent of transactions on its platform was attributable to the company.
Reports claiming Coinbase engaged in proprietary trading started appearing after the New York state’s Attorney General (NYAG) published a report which noted that the report’s findings were based on information Coinbase voluntarily provided in the Virtual Markets Integrity Initiative Questionnaire but denied engaging in proprietary trading.
Coinbase’s Chief Policy Officer Mike Lempres said that the company “does not engage in proprietary trading:
“The report states: ‘Coinbase disclosed that almost twenty percent of executed volume on its platform was attributable to its own trading.’”
One section of the report said that “almost twenty percent of executed volume” on Coinbase’s platform was attributable to its own trading. “Such high levels of proprietary trading raise serious questions about the risks customers face on those platforms,” the New York Attorney General said.
But Lempres argued that this comment was “misreported in the media as ‘self-trading,’ which is inaccurate,” as it doesn’t represent self-trading, but volume coming from Coinbase Consumer. He clarified that when the firm executes these trades, it does so on behalf of its Coinbase Consumer customers.
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