One of the largest cryptocurrency exchange platform in the world, Coinbase, have rubbished claims that they have been engaging in in proprietary trading. In an official statement on 20th September, they have described the claims made by the media as “inaccurate”.
Coinbase announced via their blog, that they wanted to “correct the record” after media reported that:
“Coinbase disclosed that almost twenty percent of executed volume on its platform was attributable to its own trading.” – The report states
Coinbase believe they have been “inaccurately characterized” in the results submitted by the New York Virtual Markets Integrity Report. The report makes out that Coinbase have engaged in “self-trading”, after Coinbase had volunteered this information. Coinbase are seemingly annoyed my this misrepresentation and have clarified how their exchange platform operates.
“Coinbase does not trade for the benefit of the company on a proprietary basis. In order to provide an easy-to-use customer experience, Coinbase Consumer quotes a price and then quickly fills the order from our exchange platform (Coinbase Markets). This takes advantage of the liquidity provided by the entire Coinbase ecosystem.”
They continued by explaining how “customer-driven volume via Coinbase Consumer” has been mistaken for “self-trading”. The statement repeatedly reinforces the fact that the exchange is neither operating a proprietary trading desk, nor undertaking “market making actions.”
The volume figure stated in the report has been misreported in the media as “self-trading,” which is inaccurate. The figure represents customer-driven volume via Coinbase Consumer. Coinbase does not operate a proprietary trading desk, nor does it undertake market making actions.
“Coinbase welcomes the New York Virtual Markets Integrity Report, which shines a helpful spotlight on important compliance issues in digital asset exchange practices. Unfortunately, some media coverage inaccurately characterized the report’s findings, which are based on information we voluntarily provided in the Virtual Markets Integrity Initiative Questionnaire.We would like to correct the record.”
This was the opening statement made by Coinbase before they went on to set the record straight. We are still waiting to see if the Office of the New York State Attorney General will issue a response to their reply, but we will be sure to keep you informed.
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