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Coinbase claps back at the NY AG report, asserts on customer safety

Akash Anand



Coinbase claps back at the NY AG report, asserts on customer safety
Source: Unsplash

The aftermath of the report released by the New York Office of the Attorney General is still creating tremors in the cryptocurrency space. Coinbase, one of the biggest cryptocurrency exchanges in the FinTech ecosystem, responded to the allegations mentioned in the report, saying that the allegations were misplaced.

The report titled ‘Virtual Markets Integrity Initiative’ stated that Coinbase was involved in over 20% of the executed volume on their exchange. The report aimed at creating awareness amongst the user base about the high level of “proprietary trading” that occurred on the platform as well as the repercussion they might face in the future.

The report stated:

“As a general principle, when a significant percentage of the volume in one or more assets on a venue is attributable to one source, customers face the risk that the availability of liquidity in those assets could change, without notice and at any time, including when liquidity is needed most – namely, in times of market volatility or rapid price movement.”

Mike Lempres, the Chief Policy Officer at Coinbase, retaliated to the comments in the report. In a Medium blog post titled ‘Correcting the record’, the official affirmed on the fact that it does all trades on behalf of Coinbase Consumer customers.

He also stated that some figures were misrepresented in the report, citing the example of “self-trading”. The company has gone on record and stated that the company only cites figures that are given by the customers and does not indulge in actions that would sway the market in any way.

Lempres also said:

“Our goal is to be the world’s most trusted place to buy, store and interact with cryptocurrency. We welcome oversight and will continue to work with regulators to promote the cryptocurrency ecosystem.”

One of the main concerns highlighted in the report by the NYAG pointed to insider trading and the scenario that a lot of the investors and traders partake in it to ensure the continuous rise of currencies. The report also stated:

“…potentially using non-public information to inform their trades. Fourth, apart from individual employee trading, several trading platforms themselves trade on their own venue in a proprietary capacity.”

Coinbase is not the only cryptocurrency which was called out by the Attorney General, with the list also including exchanges like Bitfinex, bitFlyer, Poloniex, and Tidex. The Office of the Attorney General also elucidated on the policies that cryptocurrency exchanges need to follow which “define, detect, prevent, or penalize suspicious trading activity or market manipulation.” This was followed up by clauses that focussed on prevention of mismanagement of assets during trade on any cryptocurrency exchange.

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John McAfee says he will reveal Nakamoto’s identity, Coinbase expands to 11 countries, and more





John McAfee says he will reveal Nakamoto's identity, Coinbase expands to 11 countries, and more
Source: Unsplash

Daily Crypto News – April 18

1. John McAfee on Satoshi Nakamoto: The Founder of McAfee Associates stated that he would narrow down on the identity of Satoshi Nakamoto until he reveals Satoshi himself, otherwise he would reveal his identity to the crypto community. He also spoke about how he knows about Satoshi, to read about it, click here!

2. Coinbase expands its services to more countries: The leading exchange platform announced that it expanding its services to 11 more countries, which includes India, South Korea, and New Zealand. People in these countries can avail services provided on, Coinbase Pro and its app on iOS and Android.

To know more about the countries Coinbase has expanded to, click here!

3. Craig Wright says the crypto-community want to silence him: Craig Wright, the self-proclaimed Satoshi Nakamoto, stated that the majority of the community was against him as they “desire to silence” him because they see someone who would bring an end to scams and pumps and dumps.

He also spoke about the next steps he would be taking in terms of the legal action concerning his defamation case. To read about it, click here!

4. Binance “marks the birth of a new genesis block”: The largest cryptocurrency exchange in terms of trade volume announced the launch of its Decentralized Exchange, and also stated that the mainnet swap would take place on 23 April 2019.

To read more about Binance DEX, click here!

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