The cryptocurrency exchange platform Coinbase has announced the end of its crypto lending program “Borrow”, which allowed users to borrow money using BTC (Bitcoin) as collateral. The US-based exchange offered loans of up to $1 million at an annual interest rate of 8.7%, with users able to borrow up to 40% of their Bitcoin holdings. The change will take effect on May 10, but active loans will not be affected, and customers will continue to have access to their loan history and tool dashboard Borrow.
SEC Oversight and Coinbase Services
The decision to terminate the Borrow program comes as the Securities and Exchange Commission (SEC) has warned Coinbase that it may face enforcement action for allegedly offering and selling unregistered securities. The SEC is currently investigating the spot market of the platform, its service of staking, Coinbase Premium And Coinbase Wallet. The debate on the definition of a security with regard to assets continues in political circles in Washington.
Coinbase enters the international derivatives market
In open conflict with the SEC, Coinbase launches outside the United States with an exchange in Bermuda
https://t.co/pcFABfaM2H
— Coin Academy (@coinacademy_fr) May 2, 2023
In a separate development, Coinbase launched a international exchange platform derivatives for institutional investors outside the United States. The new platform lists the futures contracts Bitcoin and Ether perpetuals this week, with all transactions settled in USDC without the need for fiat gateways. The company is due to release its financial results on May 4 as its actions are up 32.8% since the start of the year.
The article Coinbase terminates its crypto lending program amid regulatory concerns appeared first on Corner Academy
