Coinbase, a popular cryptocurrency exchange headquartered in San Francisco, California, has responded to the New York Attorney General’s claims that nearly 20 percent of the platform’s transactions belong to the exchange.
In short, Coinbase has denied that the company has engaged in proprietary trading — the term for when a firm or bank invests for its own direct market gain, as opposed to earning commission by trading on behalf of its clients.
As reported by CNBC, the New York Attorney General’s office published a recent report in which it claims that “almost twenty percent of executed volume” on Coinbase’s platform belongs to the company.
The information used for the report was provided voluntarily by Coinbase, which has taken steps in the past to protect its users’ information against requests from the Internal Revenue Service (IRS).
Providing An ‘Easy-to-Use Customer Experience’
Coinbase has responded by explaining that the transactions in question are merely parts of the company’s operations to provide customers with the best service — something which may have gone over the Attorney General’s head.
Coinbase has been accused of conducting insider trading in the past when it launched Bitcoin Cash (BCH) on its platform, though an internal investigation failed to provide evidence of any wrongdoing.
Cracking Down on Crypto Exchanges
Coinbase isn’t the only major cryptocurrency exchange targeted by the New York State Attorney General’s office.
As BeInCrypto reported yesterday, popular cryptocurrency exchange Kraken has also drawn negative attention from the office, which reported that the exchange has little interest in protecting customers and preventing market manipulation.
What do you think of Coinbase’s response to the New York State Attorney General’s report? Let us know in the comments below!