Coinbase famous that the latest motion is a part of its efforts to reinforce general market well being and consolidate liquidity.
One of many world’s largest crypto exchanges Coinbase Global Inc (NASDAQ: COIN) has been taking measures with a purpose to increase liquidity on the platform. Because of this, Coinbase has suspended a complete of 80 non-USD buying and selling pairs. This consists of cryptocurrencies like Bitcoin, stablecoins, and fiat currencies like Euro.
Coinbase just lately announced the removal of a number of buying and selling pairs on October 16, as a part of its efforts to reinforce general market well being and consolidate liquidity. These buying and selling pairs had been delisted from Coinbase, Superior Commerce, and Coinbase Prime at 19:30 UTC on the identical day.
This motion aligns with Coinbase’s earlier plans to droop these markets, emphasizing that customers can nonetheless commerce them within the extra liquid USD order books by using the alternate’s USDC balances. Coinbase identified that these eliminated markets constituted solely a negligible portion of its complete buying and selling quantity.
Coinbase has continued its efforts to reinforce liquidity by suspending buying and selling pairs on its platforms, following an analogous transfer in mid-September when the alternate eliminated 41 non-USD markets, citing the identical rationale. Notably, not one of the buying and selling pairs suspended included USDC, a stablecoin collectively developed by Coinbase and Circle.
Coinbase has undertaken these liquidity-improving measures at a time when it faces a decline in buying and selling volumes all year long. In accordance with information from CCData, Coinbase’s spot buying and selling volumes for Q3 2023 noticed a big drop of 52% in comparison with the identical interval in 2022.
In a broader business context, different main cryptocurrency exchanges, together with Binance, have additionally skilled a discount of their spot market share dominance. CCData information signifies that Binance’s spot market share declined for the seventh consecutive month in September 2023, dropping from 55% early within the yr to 34% in September 2023.
Coinbase Pressures SEC for Regulatory Guidelines
Coinbase has been making a number of changes to its insurance policies to adjust to the regulatory guidelines. Nonetheless, the crypto alternate has been preventing and uphill battle with a purpose to compel the US SEC to carry readability on crypto rules.
On Monday, Coinbase filed a criticism within the US Court docket of Appeals for the Third Circuit, accusing the SEC of neglecting its regulatory duties. This transfer comes after Paul Grewal, Coinbase’s Chief Authorized Officer, publicly known as on the SEC to supply a complete response to a rulemaking petition regarding cryptocurrencies that Coinbase had submitted the earlier yr.
Grewal criticized the SEC’s delays and emphasised the urgency of the matter on varied social media platforms. He expressed dissatisfaction with the SEC’s earlier response, deeming it inadequate, and demanded an intensive reply inside one month. Coinbase asserts that the SEC initiated an enforcement motion towards them with out clarifying how present legal guidelines pertain to cryptocurrencies.
The corporate contends that its rulemaking petition has been persistently missed by the SEC for over a yr. Following this enforcement motion, the courtroom has requested the SEC to supply a proof for its denial of Coinbase’s petition.
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