Coinbase May Launch Margin Trading

Margin trading was launched on the GDAX, which was later renamed to Coinbase Pro, however, this feature was turned due to the ambiguity in the legal field
30 May 2019   253

In a conversation with The Block, Coinbase vice president Emilie Choi said the company is considering launching margin trading.

According to her, the launch of margin trading and the associated lending is an important step for the development of Coinbase. However, Choi notes, there are still many regulatory uncertainties in the cryptocurrency market that contribute to the occurrence of risks.

We still need to figure that out because there's not a lot of regulatory clarity there right now in the US. And so that that is being discussed.
 

Emilie Choi 

VP of Business, Data & International, Coinbase

According to CCN, recently the head of Coinbase, Brian Armstrong, expressed confidence that the margin trading option is one of the most popular. Also, according to him, a Coinbase debit card, previously made available to residents of the UK, will soon be launched in the United States.

Note that margin trading was launched at the beginning of 2017 on the GDAX exchange, which was later renamed to Coinbase Pro. However, at some point, this feature was turned off, presumably due to the ambiguity in the legal field and the tightening of requirements on the part of regulators. So far, according to the FAQ on the website of the exchange, trading with leverage is not available.

Margin trading option is currently being finalized by the largest cryptocurrency exchange Binance.

CFTC to Approve LedgerX's Deliverable BTC Futures

At the same time, another platforms such as Bakkt, ErisX and Seed CX still awaiting regulatory approval
26 June 2019   66

Cryptocurrency derivatives provider LedgerX LLC has received a license from the Authorized Derivatives Market (DCM) from the US Commodity Futures Trading Commission (CFTC), which will allow it to launch the country's first bitcoin futures.

Deliveries for deliverable futures are made in the underlying asset, not in fiat funds. Thus, LedgerX outstripped the Bakkt, ErisX and Seed CX platforms, which are still awaiting regulatory approval.

At the same time, LedgerX intends to launch the Omni platform for trading options, swaps, and bitcoin futures for retail investors, since at the moment it does not see enough interest from institutional market participants.

However, it should be added that some experts have already expressed fears that the nature of the license received will not allow LedgerX to provide margin tools to customers, and Bakkt should have such functionality.

Recall about the intentions to obtain the appropriate permission and overtake competitors LedgerX said in April.