One of the most prominent cryptocurrency exchanges from the United States has just dropped sad news for its users. The announcement is mainly concerning the customers that are used to performing margin trading.
The exchange announced today that its users will not be able to perform margin trading. The exchange also confirmed that the service for performing margin trading will be decommissioned effective from tomorrow.
The news was later confirmed by the Chief Legal Officer at the Coinbase Pro exchange. The Officer confirmed on the Coinbase Pro blog that no users will be able to perform margin trading starting November 25, 2020. The exchange is also very precise about the closure timing as it confirmed that no further margin trades would be executed after 02:00 PST.
The exchange has provided more clarity around the implementation of the new change. The exchange confirmed that they have plans to take the product completely off the grid from December 1, 2020. The exchange confirmed that it is allowing time till December to ensure all pending and existing positions for margin trading have been expired.
The Chief Legal Officer provided further clarification on their action of taking off margin lending. He presented the ideology of their cryptocurrency exchange around the margin lending products. He stated that the margin lending products must be backed by simple, clear, and easy regulations.
Once the above has been ensured, only then the users from the United States would be able to use margin lending services without facing any troubles or concerns.
Grewal also communicated the goal of the Coinbase Pro crypto-exchange. He stated that their management aims to work closely with the regulatory authorities from the United States to streamline the process.
He also clarified that their exchange has made this decision based on the new guidelines. It is the Futures Trading Commission (CFTC) that has introduced these guidelines.
Based on the recent announcement made by Coinbase Pro exchange, there have been many speculations presented. Some pundits suggest that this change will help cool down the price runs that have started taking place recently.