U.S.-based crypto trading platform Coinbase Pro informed today that clients can't do margin trading on the protocol anymore.
Margin trading is the case when an investor borrows capital from an intermediary to make deals for more than they actually own.Chief Legal Officer Paul Grewal announced that no further margin trades would be provided since November 25 at 2:00 PST. The company said that it would disable the stock in December “after all present margin trades have run out.” Any open limit commands will be canceled at that time as well.
Paul Grewal also wrote in a blog that the company believes clear, common-sense regulations for margin lending stocks are required to protect U.S shoppers and make them secure. He mentioned that Coinbase is eager to work closely with regulators to reach this goal.
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Coinbase resumed its margin trading assistance this year after putting the feature off in 2017. A market wreck in the rate of RTH made the exchange to suspend margin until thisFebruary when it launched the feature in 23 states. In 2017, Coinbase received an inquiry concerning its margin service after the market crash. Presently, matters of recently-released CFTC supervision are pushing the exchange to terminate the services indefinitely, according to the blog post.