The cryptocurrency exchange in the United States Coinbase Pro announced yesterday evening that clients will not be able to use margin trading on the platform as of Wednesday.
According to Queenbase Blog, Chief Legal Officer Paul Grewall said that no new deals will be allowed on the sidelines starting Nov 25 at 2:00 PDT.
The exchange also stated that it will cut service to the product in December once all existing margin positions expire.
where Grewall said: We believe there is a need for reasonable and clear regulations for margin lending products to protect US clients and provide peace of mind ... We look forward to working closely with regulators. To achieve this goal.
Griwal explained that the move was in response to new directives from the CFTC.
last March, the committee clarified its position on the physical delivery of assets to cryptocurrencies purchased using leveraged trading or other methods.
The CFTC guidelines also stipulated that there would be a deadline of 28 days for physical delivery, allowing buyers to use any digital asset purchased after that period.
When participants trade futures in the traditional markets, they are betting on the future price movement of the underlying asset. And if they hold those futures contracts all the way through settlement, they end up receiving the underlying asset, and it is actually handed over to them.
However, CFTC guidelines make clear that for digital assets, parties selling tokens and those acting as facilitators - including Coinbase - will not be They have no control over the digital currencies used in margin trading once it is delivered to the client.
This announcement comes on the same day Coinbase stated that it will no longer use Form (1099-K) to report cryptocurrency activity of its users to the Internal Revenue Service. .
This tax form was intended for CoinBase users who made more than 200 transactions and $ 20,000 of volume annually, but did not include an accurate report on the cost basis and fair market value of any Investments in digital currencies.
Coinbase has announced that it will use ...
