One section of the report said that “almost twenty percent of executed volume” on Coinbase’s platform was attributable to its own trading. This information was voluntarily provided by Coinbase.
“Such high levels of proprietary trading raise serious questions about the risks customers face on those platforms,” the New York Attorney General said.
But Lempres argued that this comment was “misreported in the media as ‘self-trading,’ which is inaccurate.”
“Coinbase does not trade for the benefit of the company on a proprietary basis. In order to provide an easy-to-use customer experience, Coinbase Consumer quotes a price and then quickly fills the order from our exchange platform (Coinbase Markets). This takes advantage of the liquidity provided by the entire Coinbase ecosystem,” Lempres explained.
Regulators globally have been taking a closer look at the cryptocurrency industry. On Wednesday, U.K. lawmakers said they want to clamp down on the “Wild West” cryptocurrency market and make Britain a legitimate home for the trading of digital currencies.