Coinbase Says Allegations About Market Manipulation Were Misplaced
There are several exchanges that do not agree with the report released by the New York Office of the Attorney General. Coinbase, which is one of the most valuable companies in the cryptocurrency world and one of the largest crypto platforms in the market, decided to respond to the allegations present in the repornt. They explained that the accusations made were not correct and were misplaced.
According to the report, Coinbase was responsible of 20% of the executed volume on their trading platform. The main intention behind it was to warn users about the proprietary trading that takes place in some platforms.
The report says that if the volume in a specific asset is related only to one source, users are at risk of experiencing sudden changes in the liquidity of this asset.
Mike Lempres, Chief Policy Officer at Coinbase, answered back to the report in a Medium blog post. He answered that the report misrepresented some figures, including the example of ‘self-trading.’ Mr Lempres wrote that the company cites figures that are given by the customers.
He then mentioned:
“Our goal is to be the world’s most trusted place to buy, store and interact with cryptocurrency. We welcome oversight and will continue to work with regulators to promote the cryptocurrency ecosystem.”
During the last year, Coinbase has been closely working with regulators in the space in order to be compliant with current regulations. Moreover, Coinbase wanted to launch a new trading platform with several tokens and cryptocurrencies.
Coinbase was just one of several companies mentioned by the Attorney General. Other exchanges were Bitfinex, bitFlyer, Poloniex, and Tidex. The report aims at creating a better cryptocurrency environment were platforms operate in a professional way and do not allow manipulation to take place in their exchanges.
The U.S. Securities and Exchange Commission (SEC) did not approve several Bitcoin ETF due to fear of market manipulation by different participants. Exchanges should take very seriously these issues and be able to offer professional products to the market.
The report says that companies should detect, prevent and penalize suspicious trading activities or market manipulation.