According to a recent official announcement published by the Coinbase Exchange, it stated that the media has inaccurately characterized the results of the New York’s Virtual Markets Integrity Report, to which the exchange had voluntarily contributed its working informations concerning its practices by taking part during a Virtual Markets Integrity Initiative forum.
Yesterday the exchange cited the wrong report published, with the vision to correct the records. The report stated:
“Coinbase disclosed that about one-fifth of the volume executed on the platform was because of its own trading.”
But, rather according to the Exchange’s reference explaining this, it mentioned that it processes there trades on the behalf of its user’s request nor just by itself.”
Adding further it was mentioned that:
“Coinbase doesn’t trade for the benefits of itself on a proprietary basis. So as to provide an easy-to-use user’s expertise, Coinbase users quotes a value and then quickly fills the order from the exchange platform. This takes advantage of the liquidity provided by the whole Coinbase scheme.”
The firm so emphasised that “self-trading” – because as the info had been misconstrued by third-party coverage – inaccurately distorts what’s actually “customer-driven volume via Coinbase user’s.” The statement repeatedly reinforces the actual fact that the exchange is neither operating a proprietary commerce desk, nor endeavoring “market making actions.”
Earlier in Jan. 2017, Coinbase received a BitLicense from the New York’s State Department of Financial Services [DFS], that has been needed for all the crypto trading companies as of from Aug. 2015.
In a previous statement, Coinbase had revealed that its participation within the New York’s Virtual Markets Integrity report and questionnaire was supposed to shed light on several steps, the exchange has been addressing to deal with matters of compliance with federal and state regulators, that embrace measures to deal with cybersecurity, market integrity and platform dependableness.