Coinbase rejected accusations of proprietary trade – Bits Media

The American cryptocurrency platform Coinbase rejects the accusations of an artificial increase in the cost of digital currencies and declares, that some of the competitors do this.

Coinbase hired traders, so that they use their own funds for the company for making transactions and rates for cryptocurrencies in order to make a profit. Journalists Wall Street Journal, that Coinbase funds for the amount $100 Milln were used in a test transaction, which the employees of the crypto -tank called their own. Later, the exchange in its blog rejected the charges, stated, that journalists in their article mixed up actions, oriented to a client with proprietary trading:

“One of the strongest aspects of our platform Institute Prime is a trading model, according to which we act only in the interests of our customers. We do not consider this to be a prospecting, Since the goal is not to profit from the short -term increase in the cost of traded digital currencies ".

Disputes are still underway about that, how proprietary trade affects the economy. Some believe, that the financial crisis 2008 year in the United States was called precisely proprietary. To prevent a repetition of the situation of 14 years ago in 2010 The year the "Volker's Rule" was introduced, According to which banks and large financial institutions cannot make large speculative investments using their own funds for the sale of securities, derivatives and commodity futures.

Earlier Coinbase Director General Brian Armstrong (Brian Armstrong) stated, that forced measures of regulators against cryptocurrency companies are restraining the development of the industry.