Posted 1 year ago | by @devadmin
Coinbase is disabling its margin trading product and Binance has given users in the U.S. who were adopted into its platform just 2 weeks to remove their funds from the exchange. This is all apart of what looks to be an attempt to comply with the new rules set by the Commodity Futures Trading Commission (CFTC).
Coinbase’s chief legal officer, Paul Grewal, explained in a blog post:
“In response to new guidance from the Commodity Futures Trading Commission, we are disabling our margin trading product.”
The policy goes into effect starting on Wednesday, Nov. 25th when all customers currently using Coinbase’s margin trading will become permanently restricted from opening new margin trades and all open limit orders will be canceled, Grewal detailed. “The product will be taken offline in December once all existing margin positions have expired.”
The chief legal officer further explained that Coinbase believes “clear, common sense regulations for margin lending products are needed to protect” U.S customers, adding that the company “look forward to working closely with regulators to achieve this goal.”
Binance has also taken renewed aim at banning U.S. users from accessing its international platform.
“You have 14 days to close all active positions on your account and withdraw all your funds, failing which your account will be locked. Once your account is locked, you will have to raise a customer service ticket for us to assist you further,” it continues.
The bans appear to be associated with users’ IP addresses, and may stem from the CFTC’s regulatory rules recently introduced which details regulation concern against margin trading which was previously used in an enforcement action against Bitfinex as reported by Bitcoin.com.
Binance has not admitted that its reasoning is due to the new CFTC law set which was published in March titled: “Final Interpretive Guidance on Actual Delivery for Digital Assets.” However, it seems to be a little more than mere coincidence that Binance is doing this sweep and Coinbase has shutdown its margin trading platform.
Bitcoin is currently trading at [FIAT: $18,965.18] DOWN -1.4% in the last 24 hours according to Coingecko at the time of this report.