Coinbase responds to Wall Street Journal's Monopoly Trading Allegations in new blog post
Cryptocurrency exchange Coinbase says it is not engaged in proprietary trading, a speculative investment activity that federal regulation is known as the Volcker Rule restricts due to its role in the crisis. financial year 2008.
In a new blog post, the California-based company refutes The Wall Street Journal's claims that it uses its own funds to speculate on crypto assets.
The newspaper, in an article published on September 22, says that Coinbase has hired at least four high-profile traders to use the company's own funds to trade, stake and block cryptocurrencies for profit profit. The report states that the folks at Coinbase describe the activity as proprietary trading.
“Coinbase sometimes purchases cryptocurrencies as the primary currency, including for operational purposes and our corporate treasury. We do not consider this a proprietary transaction as it is not intended for Coinbase to profit from a short-term increase in the value of the cryptocurrency being traded. "
Coinbase said it has formed a new team called Coinbase Risk Solutions (CRS), but launched it to provide solutions and support to institutional investors seeking exposure to digital assets digital.
“The goal of CRS is to expand institutional participation in web3 beyond HODLing.
To do this, we are following a solid path on Wall Street, where financial services firms provide clients with multiple ways to access new asset classes and manage some of the risks certain risk. We have tools and policies that reflect financial services industry best practices and are designed to manage conflicts of interest.”
Coinbase is facing allegations of proprietary trading as its CEO Brian Armstrong calls crypto regulation a national security issue in the US. The company is also preparing to offer its services in the Netherlands after becoming the first major cryptocurrency exchange to be approved by the Central Bank of the Netherlands to operate in the country.
Sep 24, 2022