Coinbase ends margin trading services citing regulations and pointed to further guidance from the Commodity Futures Trading Commission so let’s read more in today’s Coinbase news.
Coinbase Pro, a US Exchange for professional crypto trading will no longer offer margin trading as of late. Citing guidance from the Commodity Futures Trading Commission the exchange said there will no longer be margin trades starting at 5 pm on November 25 by adding that the product “will be taken offline in December once all existing margin positions have expired.”
As Coinbase ends margin trading, the Chief Legal Officer Paul Grewal explained in a blog post:
“We believe clear, common sense regulations for margin lending products are needed to protect and provide peace of mind to U.S customers. We look forward to working closely with regulators to achieve this goal.”
Margin trading is the process of trading when an investor borrows funds from a third party like Coinbase in this case to make trades for more than they own. The Pro branch of the exchange required investors that are interested in margin trading to be onboarded so that they understood basic concepts and risks but right now, apparently it is concerned that there are no longer satisfactory to steer of regulators.
In our recently posted XRP news, XRP exploded by 100% on Coinbase despite the intense illiquidity everywhere on the market but it seems that a bull run is forming and prices are diverging on top of the exchanges. XRP saw some strong price volatility in the past 24hours as the altcoin market started to enhance thanks to the massive bitcoin rally. XRP exploded by 100% and is now trading at $0.69, which means it increased by 40% in the past day. In a few minutes’ time, the coin traded as high as $0.92 on Coinbase which means that the coin increased by 100% on the day. While XRP was rallying 100% it was not the strangest thing that we have seen but it was somewhat strange that XRP diverged on exchanges. On Coinbase, it hit $0.92 and on other exchanges, it hit $0.80.
Also, President Donald Trump nominated an Ex-Coinbase executive, Brian Brooks, as the head of the Office of the Comptroller of the currency. Brooks worked as a Legal Officer at Coinbase and was serving as an acting comptroller since May 29 once Joseph Otting resigned.
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