Coinbase Responds to WSJ over the Accusation of Running a Business of Proprietary Trading

Wall Street Journal has published an article saying that Coinbase has been looking for methods to earn profits. It asserted that the U.S.-based crypto exchange was involved in the business of proprietary trading. In its response to the respective allegation, Coinbase has noted that the company has nothing to do with proprietary trading and that it even does not provide market-making services.

Earlier, Coinbase refuted allegations by Securities & Exchange Commission (SEC) as well.

WSJ Receives a Backslash from Coinbase as the Crypto Exchange Denies Its Allegations

The platform mentioned that they give priority to their consumers in the case of trading by trading on their behalf. Consequently, it added, their incentives as well as that of their consumers are in line with each other in terms of design. The venue mentioned that to meet their operational and treasury-related purposes, they buy crypto frequently. As per Coinbase, this is not considered by them as proprietary trading as the purpose behind this is not to take advantage of the momentary increases which occur in crypto’s trading value.

The venue explained that numerous organizations are taking interest in crypto investment. In such a scenario, they are introducing exclusive solutions to assist. In the words of the platform, one method to provide facilities to their organizational users is via a small uniquely established group named Coinbase Risk Solutions (CRS). Furthermore, Coinbase emphasized that CRS gives solutions to professional corporate investors endeavouring to have exposure to the crypto world.

Coinbase Claims to Take Web3 World beyond Just HODLing

A few of the respective investors are even now acquainted with the crypto industry and they seek help to manage hazards along with taking part in protocols. CRS’ objective is to spread organizational inclusion across the Web3 sector beyond just HODLing. For this purpose, the exchange explained, they are moving into a competitive environment within Wall Street. In their view, that is the jurisdiction where the companies providing financial services offer the consumers several methods to acquire exposure to the latest asset classes as well as manage particular hazards.

In addition, the platform moved on to say that they possess the policies and the instruments that denote the finest practices throughout the industry of financial services. According to them, these services are developed to deal with conflicts that are related to interests. Furthermore, Coinbase also brought to the front that in December previous year they precisely sketched their investment activity within the world of digital assets as included in their testimony given to Congress.