Crypto

Crypto: Coinbase under the gun of the authorities again

Coinbase is on the radar of American financial authorities like never before. The activities of the cryptocurrency exchange platform are carefully studied by the Securities and Exchange Commission (SEC). The latter suspects Coinbase of allowing its clients to swap assets that should have been registered as financial securities, three people familiar with the matter tell Bloomberg. An investigation would be opened.

“We are confident that our rigorous due diligence process — a process the SEC has previously reviewed — is driving securities off our platform, and we look forward to engaging with the SEC on this matter,” General Counsel Paul Grewal tweeted. For months, there have been voices in Washington for U.S. regulators to step up their scrutiny of cryptocurrency exchanges as their ratings plummeted, wiping out hundreds of billions of dollars in market value.

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Coinbase points out 7 risks that affect its future and the future of cryptocurrencies

The largest American trading platform Coinbase allows you to exchange more than 150 tokens. If these products were considered securities, the company might have to register with the SEC. Coinbase shares fell from $14.14 to $52.93 in New York following the news.

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Cryptocurrencies: invest regularly to smooth out the risk

Coinbase has been at war with the regulator for months now. As Bloomberg recalls, last week the platform asked the SEC to propose clearer rules regarding cryptocurrencies. Tensions escalated on July 21 when the SEC accused a former employee of the company of leaking insider trading to help his brother and friend buy the tokens before they were introduced to the platform.

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