Coinbase concerns rock crypto market, seized PlusToken coins worth billions

The week’s biggest stories from the cryptocurrency world that you may have missed

Volatility hit the cryptocurrency market this week alongside some market-shaking news that regulators in the United States may be looking to place heavy restrictions on financial companies dealing with cryptocurrency transactions. At the same time, billions of dollars worth of seized PlusToken digital currencies are slated to be forfeited to the national treasury in China.

Here’s everything you need to know about these stories, and more, in this edition of OKEx Insights’ Crypto News of the Week.

Coinbase discontinues margin trading, cites regulatory concerns

Coinbase announced that it is discontinuing its margin trading products in December following concerns about regulatory scrutiny from the United States Commodity Futures Trading Commission.

Afterward, Coinbase CEO Brian Armstrong lambasted the U.S. Treasury Department’s supposed plans to track self-hosted cryptocurrency wallets — which he believes would require financial institutions, like Coinbase, to verify the owner of said wallets and collect identifying information about them.

The exchange later experienced technical difficulties amid severe price volatility in the cryptocurrency market.

Key takeaways

  • If Armstrong’s concerns are validated, such regulation would likely represent the largest blow from the U.S. federal government to the blockchain and cryptocurrency industry.
  • Such regulation would also follow the Financial Action Task Force’s instruction to apply the “Travel Rule” to cryptocurrency businesses operating within its member countries.
  • The price of BTC and the wider cryptocurrency market reacted negatively to the news. The cryptocurrency market leader dropped by 11.26% yesterday on OKEx.

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Coinbase concerns rock crypto market, seized PlusToken coins worth billions was originally published in OKEx Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

Publication date: 
11/30/2020 - 05:08

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.