Coinbase Updates Pledge Service in Response to Regulatory Pressure

03/11/2023 02:56 • Metaverse & Beyond • 114 views

According to the news on March 11, under regulatory pressure, Coinbase is updating the terms and conditions of its pledge service. In an email to customers this Friday, Coinbase said that the pledge service will continue to be provided, but Coinbase will only serve as a service provider connecting pledge users, verifiers and agreements, and will also charge “transparent Coinbase fees”, The biggest change in the terms is that “users must now cancel the pledge before selling or transferring some assets, which makes the service of Coinbase more consistent with the type of pledge service that is native to the blockchain network. The assets that must be released from the pledge on Coinbase now are Solana (SOL), Cosmos (ATOM), Cardano (ADA) and Tezos (XTZ)”. Coinbase also reminded users that it may take “several hours or weeks” for any assets pledged on its platform to cancel the pledge, and the time required for transfer or sale depends on the agreement rules and the processing time of Coinbase “. （decrypt）

Terms and conditions of Coinbase’s updated pledge service: the pledge must be released before the asset is sold or transferred

Analysis based on this information:

Coinbase, one of the most popular cryptocurrency exchanges in the world, has updated its pledge service in response to regulatory pressure. The company announced in an email to customers on March 11 that it will continue to provide the service, but will now act only as a service provider connecting pledge users, verifiers, and agreements. Coinbase will also charge “transparent Coinbase fees” for its services.

The most significant change in the terms and conditions of the pledge service is that users must now cancel the pledge before selling or transferring some assets. This move brings Coinbase’s pledge service more in line with the type of pledge service that is native to the blockchain network. The assets that must be released from the pledge on Coinbase now are Solana (SOL), Cosmos (ATOM), Cardano (ADA), and Tezos (XTZ).

Coinbase has also reminded its users that canceling a pledge on its platform may take “several hours or weeks.” The length of time required for transfer or sale depends on the agreement rules and the processing time of Coinbase.

This update comes as Coinbase faces increased scrutiny from regulators in the US and other countries. Earlier this month, the US Securities and Exchange Commission (SEC) warned investors that the regulation of cryptocurrency exchanges like Coinbase is still evolving, and that some aspects of their operations may be subject to SEC oversight.

In response to these regulatory pressures, Coinbase has been taking steps to improve its compliance with existing laws and regulations. The company recently hired a former SEC official as its new chief compliance officer and has been working to expand its compliance team.

In conclusion, Coinbase’s updated pledge service is part of the company’s efforts to improve its compliance and meet the regulatory challenges it faces. By bringing its pledge service in line with blockchain-native pledge services and improving transparency, Coinbase is taking steps to build trust with its customers and regulators.

This article and pictures are from the Internet and do not represent qiAiAi's position. If you infringe, please contact us to delete:https://www.qiaiai.com/metaverse/8270.html

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.