Bitcoin, Crypto currency, Blockchain

Coinbase turns the accusations of the public Prosecutor’s office

4d534700ae1a164c64f3a6a4276ceab1 - Coinbase turns the accusations of the public Prosecutor's office

The Bitcoin exchange Coinbase is suspected to have a significant proportion of their Trades within the staff running. Now a representative of the stock market expressed to the New York office of the public Prosecutor, the matter to be clear.

Coinbase, a stock exchange, the Bitcoin, and other crypto-currencies can be traded, under the suspicion that Trades in self-interest. Because a report from the New York office of the public Prosecutor shall disclose that 20 percent of the trading volume of activities that were received from employees of the stock exchange. These denied the allegations.

The dispute revolves around an extract from a report that the stock market has voluntarily supplied data. It says:

“Coinbase disclose [this], and that almost 20 percent of the volume exported can be attributed to their platform to their own Trading.”

Apparently, the Prosecutor had confused the terms “own trading” [translated here with their own Trading], and “proprietary trading” [proprietary trading]. In the case of the latter, there is in banking to the purchase or sale of Goods (or securities), carried out on own account.

Confusion at Coinbase

The Prosecutor’s office led ultimately to a strong trust in the crypto exchange would be in doubt. Therefore, the attorney General said:

“Such a high Level of proprietary trading, there are serious questions arise, what are the risks of consumers on such platforms.”

In order to dispel this misunderstanding, said the CPO from Coinbase immediately. In a blog post, Mike Lempres notes then:

“Coinbase is not for the benefit of the company within the meaning of proprietary trading. In order to enable an easy-to-use user experience, can specify a price and the Order then quickly on our Exchange platform to fill out. This takes advantage of the high liquidity of the Coinbase Ecosystem.“

In other words: It is according to the Chief Policy Officer Lempres the allegations are merely the result of a confusion of terms. Instead of trading for one’s own advantage, the crypto stock market to your customers according to their own information only with the necessary funds available. Therefore, Lempres emphasized:

“If Coinbase Trades runs, it does the for the customers of Coinbase, not for themselves.”

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