Coinbase Pro to shut down margin trading amid regulatory concerns

Cryptocurrency exchange Coinbase warned users about the discontinuation of the margin trading service. The reason was the recommendations of the U.S. Commodity Futures Trading Commission (CFTC), заявила the company.

New margin positions will no longer be allowed starting Wednesday, November 25. The exchange will also close active limit orders. A full shutdown of the service is planned for December.

“We believe that clear, sensible rules for margin products are necessary to protect and reassure American clients. We hope for close cooperation with regulators to achieve this goal,” the California-based company said in a statement.

Coinbase first offered margin trading to its users in early 2017 on the GDAX exchange, which was subsequently renamed Coinbase Pro. In October of the same year, the feature was disabled after receiving a request from the CFTC in connection with the Ethereum price drop, causing some users to lose funds.

In February 2020, the exchange relaunched the service on the Coinbase Pro platform.

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