Tag: Coinbase

Coinbase: Moving America Forward or Moving out of US?

by Blockchain News

In an effort to promote the importance of cryptocurrency and its potential to revolutionize the global financial system, Coinbase, the leading crypto exchange, launched a national campaign, “Crypto: Moving America Forward.” 

The campaign kick-off involves a series of four different advertisements, each featuring Brian Armstrong, to be aired on popular Sunday shows with a new chapter premiering every weekend. The ads aim to articulate the significance of crypto technology and elucidate what’s at stake for the United States.

Coinbase had previously commissioned a national survey from Morning Consult, which indicated that one in five Americans owns crypto and that 80% of Americans are inclined towards updating the financial system.

In light of these findings, Coinbase announced “Go Broad, Go Deep,” a global initiative to expand its presence in significant financial markets seeking to become crypto hubs. Locations include the UK, Canada, Dubai, Brazil, and Singapore. As part of this initiative, Coinbase has also inaugurated a global advisory council and launched a new international exchange in Bermuda.

The campaign “Crypto: Moving America Forward,” also seeks to highlight that US global economic leadership and national security might be jeopardized if the US cedes its role in constructing technology that will be central to the world’s financial infrastructure.

In addition to the ad series, the campaign comprises “The History of Money Initiative,” an educational program charting the evolution of currency, and “Stand With Crypto Day,” scheduled for July 19, where crypto-enthusiasts will gather in Washington, D.C., advocating for crypto-friendly policies.

Coinbase will also collaborate with the Financial Times to host “The State of Crypto Summit” in New York City on June 22, inviting influential stakeholders from the traditional financial sector to discuss crypto’s evolving role as financial technology.

However, amid these initiatives, last month, Armstrong warned that Coinbase might consider moving its headquarters outside the US, citing dissatisfaction with the country’s approach to crypto regulation. This move underscores the tension between crypto exchanges and regulatory bodies, a situation that demands urgent attention.

Armstrong’s initiative underscores the importance of a national conversation on the role of cryptocurrency in reshaping the global financial landscape. With one in five Americans already owning crypto, it’s clear that the future is here.

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Coinbase One Unveils New Features Including Zero Trading Fees and Increased Staking Rewards

by Blockchain News

Coinbase, a leading cryptocurrency exchange, has announced significant updates to its premium membership service, Coinbase One. Notably, the platform will now offer zero trading fees and enhanced staking rewards to its members. These features are accompanied by additional benefits from Coinbase’s partners like Messari and CoinTracker. These benefits are available for a subscription fee of $29.99 per month.

As part of the announcement, Coinbase is also expanding access to Coinbase One to users in the United Kingdom, Germany, and Ireland. This global expansion is in line with the company’s aim to provide fewer fees, more rewards, and a seamless experience for users worldwide in the crypto economy.

Coinbase One provides more value for both frequent traders and long-term investors. Traders can now execute numerous trades across hundreds of assets without the worry of transaction fees. Meanwhile, long-term investors can maximize their crypto economy involvement with the aid of lower commissions for staking ADA, ATOM, SOL, and XTZ. The membership also provides exclusive rewards throughout the year, enabling users to gain more from their crypto holdings without any additional fees.

Coinbase One is set to provide a smooth user experience by addressing customer service issues promptly. A dedicated support team is now available 24/7 for users from the United States, United Kingdom, Germany, and Ireland. In addition, U.S.-based members will receive a pre-filled tax Form 8949 that conveniently organizes crypto transactions for easy tax filing.

Coinbase One members can also take advantage of exclusive, limited-time partner deals. These include 90 days of exclusive crypto market insights and analytics with Messari Pro and an assortment of benefits from other partners like Alto IRA, Blockworks’ Permissionless, CoinTracker, and Lemonade. These offers demonstrate Coinbase’s commitment to bring the best of the crypto economy to its users.

The expansion of Coinbase One to the UK, Germany, and Ireland is part of the company’s broader strategy to bring its services to more countries in the future. Coinbase remains steadfast in its mission to develop trusted crypto products and services while supporting other innovators in bringing the next billion people into the crypto economy.

Wil One’s zero trading fee policy be the potential game changer in the crypto Industry?

Coinbase has often faced criticism for maintaining some of the highest trading fees in the crypto industry. These fees have historically been a significant revenue source for the company, demonstrating the efficacy of the model despite user grievances. The introduction of a zero-trading-fee structure for Coinbase One members is a clear response to these criticisms and could set a precedent for other cryptocurrency exchanges to follow.

Binance, Coinbase’s primary competitor and the world’s largest cryptocurrency exchange, has been highly successful due, in part, to its strategy of keeping fees low. This model has allowed Binance to attract a massive user base and set a standard for affordability in the industry.

However, Coinbase’s move towards zero fees for its premium members marks a potentially disruptive change in this landscape. Although this policy is currently limited to Coinbase One members, it could significantly impact competitive dynamics if expanded more broadly or if it forces other exchanges to consider similar strategies to maintain market share.

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Former Coinbase Product Manager Sentenced to Prison for Insider Trading Scheme

by Blockchain News

In a recent hearing in the United States District Court for the Southern District of New York, Judge Loretta Preska sentenced Ishan Wahi to two years in prison for his involvement in an insider trading scheme that had rocked the cryptocurrency industry. Wahi had worked as a product manager at Coinbase and was accused of using confidential information to profit off new token listings.

Wahi’s insider trading scheme allegedly involved using confidential information he obtained from Coinbase to purchase tokens before they were publicly available, allowing him to sell them at a higher price once they were listed. Along with his brother Nikhil Wahi and associate Sameer Ramani, Wahi allegedly profited off new token listings, totaling more than $1 million.

Authorities arrested Ishan and Nikhil Wahi in July 2022 as they were attempting to flee the country to travel to India. The two brothers were charged with securities fraud, wire fraud, and obstruction of justice.

During the hearing, Wahi’s counsel argued that the judge should consider his immigration status in the United States, that this was a non-violent offense, and that he had “zero criminal history” prior to his arrest. However, Judge Preska held Wahi responsible for his actions and sentenced him to two years in prison.

Insider trading is a serious offense that undermines the integrity of the market and harms the interests of investors. Cryptocurrency markets are largely unregulated, making them vulnerable to manipulation and insider trading. As cryptocurrency continues to gain mainstream adoption, regulatory authorities will need to implement measures to prevent insider trading and ensure market integrity.

Coinbase, one of the world’s largest cryptocurrency exchanges, is dedicated to protecting its investors’ interests and ensuring the integrity of its platform. The company has implemented strict policies and procedures to prevent insider trading, including monitoring employee activity and imposing consequences for violations.

In conclusion, Ishan Wahi’s sentencing serves as a warning to those who use insider information to their advantage in the market. Insider trading is a serious offense that will not be tolerated in any market, and those who engage in such behavior will be held accountable for their actions. Regulatory authorities must take necessary measures to prevent insider trading and ensure market integrity, and Coinbase will continue to prioritize the protection of its investors’ interests and maintain the integrity of its platform.

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Coinbase Executives Visit UAE to Explore Potential for Crypto Operations

by Blockchain News

Executives from the US-based cryptocurrency exchange Coinbase, including CEO Brian Armstrong, have visited the United Arab Emirates (UAE) to explore the potential for crypto operations in the region. The visit comes as Coinbase seeks to expand its international presence and establish strategic hubs in key locations around the world.

During the visit, Armstrong met with policymakers and spoke at the Dubai FinTech Summit, highlighting the growing interest in the region as a destination for crypto-related businesses. The UAE has become increasingly attractive to firms in the crypto industry due to its favourable regulatory environment and abundant sources of energy, which can be used to power energy-intensive operations such as crypto mining.

Coinbase’s visit coincides with a partnership between Marathon Digital Holdings and Zero Two to create a large-scale immersion Bitcoin-mining facility in Abu Dhabi. The joint venture, called the Abu Dhabi Global Markets JV Entity, will comprise two mining sites with a combined 250-megawatt capacity and will be powered by excess energy from Abu Dhabi’s grid.

Marathon Digital’s experience in developing a custom-built immersion solution for cooling mining rigs will be key to the success of the project, particularly given the challenges posed by the desert climate in Abu Dhabi, where temperatures can reach up to 28 degrees Celsius (82 degree Fahrenheit).

The joint venture between Marathon Digital and Zero Two aims to take advantage of Abu Dhabi’s excess energy to power the mining facilities, with a view to increasing sustainability and base load. The use of liquid cooling solutions will help to overcome the challenges of the desert climate, where high temperatures make traditional air cooling methods infeasible.

Overall, the partnership between Marathon Digital and Zero Two represents a significant step forward in the development of the crypto mining industry in Abu Dhabi, as the two companies look to capitalize on the region’s excess energy and overcome the challenges of the desert climate. Coinbase’s visit to the UAE highlights the growing interest in the region as a destination for crypto-related businesses, and could pave the way for further expansion in the Middle East.

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Former Coinbase Employee Sentenced

by Blockchain News

On May 9th, 2023, a federal judge in the United States District Court for the Southern District of New York sentenced Ishan Wahi, a former product manager at Coinbase Global, to 24 months in prison for insider trading. Wahi had used confidential information he obtained during his time working at Coinbase to profit off new listings of tokens, totaling up to $1.5 million.

The judge, Loretta Preska, sentenced Wahi to two years in prison and ordered him to surrender by June 21st at 2:00 PM ET to serve his sentence at the Fort Dix Federal Correctional Institution in New Jersey. After his time in prison, he will be subject to two years of supervised release for each count, running concurrently.

During the hearing, Judge Preska addressed Wahi and said, “You spoke very nicely, you said all the right things. I hope that you can make this up to your parents.” Wahi’s counsel argued that the judge should consider his immigration status in the United States, that this was a non-violent offense, and that he had “zero criminal history” prior to his arrest.

However, Judge Preska held Wahi responsible for his actions and stated that insider trading is a serious offense that undermines the integrity of the market. Wahi’s insider trading not only harmed Coinbase but also put investors’ interests at risk.

Wahi was not acting alone in his insider trading scheme. Along with his brother Nikhil Wahi and associate Sameer Ramani, Wahi allegedly used confidential information from Coinbase to profit off new listings of tokens, totaling more than $1 million. U.S. authorities arrested Ishan and Nikhil in July 2022 as they were attempting to flee the country to travel to India.

Wahi’s sentencing has come as a warning to those who use insider information to their advantage in the market. Insider trading is a violation of securities laws that undermines the integrity of the market and harms the interests of investors.

Coinbase, one of the world’s largest cryptocurrency exchanges, is dedicated to protecting its investors’ interests and ensuring the integrity of its platform. The company has implemented strict policies and procedures to prevent insider trading, including monitoring employee activity and imposing consequences for violations.

Wahi’s sentencing has also raised concerns about the potential for insider trading in the cryptocurrency market. Cryptocurrency markets are largely unregulated, making them vulnerable to manipulation and insider trading. As cryptocurrency continues to gain mainstream adoption, regulatory authorities will need to implement measures to prevent insider trading and ensure market integrity.

In conclusion, Wahi’s sentencing serves as a reminder that insider trading is a serious offense that will not be tolerated in any market. The integrity of the market is essential for investors’ trust and confidence, and regulatory authorities must take necessary measures to ensure market integrity. Coinbase, as one of the largest cryptocurrency exchanges in the world, will continue to prioritize the protection of its investors’ interests and maintain the integrity of its platform.

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OKX Global Ad Campaign Targets Outdated Financial Systems

by Blockchain News

OKX, a crypto exchange based in Seychelles, has launched a global ad campaign that targets the “broken ways” of the centralized financial system. The campaign, which was produced in collaboration with OKX’s advertising agency, BBDO New York, takes a direct aim at Coinbase’s campaign launched on March 9 that argued for the update of the financial system.

In the 60-second video campaign launched on May 9, OKX argues that the system doesn’t need an update, it needs a rewrite. While the campaign doesn’t directly reference Coinbase, it does seem to take a subtle dig at the exchange with its tagline.

OKX takes Coinbase’s idea a step further by arguing that the decentralized nature of Web3 means consumers don’t even need to be involved with centralized players in the first place. “There are two camps of thoughts. One side suggests we update existing systems to create a better world. The other believes we need a system rewrite. Our new campaign is a nod to those who believe we need to re-write the system into Web3,” said Haider Rafique, chief marketing officer of OKX.

OKX’s campaign comes after Coinbase’s “It’s time to update the system” campaign, which argued that American financial institutions are an essential part of the traditional finance system but still rely on outdated technology to serve their customers. Coinbase proposed that crypto is the answer to this problem.

In contrast, OKX’s campaign argues that decentralized systems, such as Web3, remove the need for centralized players altogether. OKX’s global ad campaign is part of its effort to expand its crypto services to Australia, which the exchange sees as a key growth market.

As the crypto industry continues to grow, exchanges such as OKX and Coinbase are vying for market share and positioning themselves as leaders in the space. Both exchanges have shown a willingness to push the boundaries and promote the adoption of cryptocurrency and blockchain technology.

While Coinbase and OKX may have different approaches to how the financial system should be updated, both agree on the need for change. As the financial landscape evolves and traditional systems become outdated, the crypto industry is poised to play a major role in shaping the future of finance.

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Coinbase Legal Chief Requests Revisions to SEC Rulemaking

by Blockchain News

Coinbase, the cryptocurrency exchange and owner of Coinbase Custody Trust Company, has called for revisions to the U.S. SEC’s proposed rulemaking on registered investment advisers’ (RIAs) responsibilities to store client assets with qualified custodians. In a letter addressed to the SEC on May 9, Coinbase’s chief legal officer, Paul Grewal, criticized the updated RIA custody rule, claiming that it unfairly targets crypto assets and makes improper assumptions about custodial practices based on securities.

Although the SEC acknowledges Coinbase Custody as a “qualified custodian,” Coinbase contends that the proposed rulemaking fails to safeguard other asset classes, such as cryptocurrencies. Coinbase’s custodian is responsible for protecting client assets from potential threats such as bankruptcy and cyber-attacks.

RIAs are firms that provide advice to clients on investments in securities and may handle their investment portfolios. These firms are registered with the SEC or state securities administrators.

Grewal’s letter advocates for an expansion of the custody obligations proposal to ensure that it remains adaptable to future investments and protects them appropriately. He called for a revision to the proposal and staff guidance, highlighting the need to safeguard all asset classes, including crypto assets, which haven’t been classified as securities until now.

Several revisions to the rule are suggested by Paul Grewal to protect investors, which includes defining state trust companies and other state-regulated financial institutions as qualified custodians, a longstanding Congressional and SEC policy. He also proposes allowing limited exposure to non-qualified custodians and removing the ban on RIA client trades on crypto exchanges that are not qualified custodians.

Coinbase’s Lawsuit Against the SEC

Coinbase filed a lawsuit in April 2022, requesting that the court compel the SEC to publicly disclose its stance on a petition submitted several months prior. In the petition, the exchange posed 50 specific questions about the regulatory treatment of certain digital assets. The U.S. SEC is expected to comply with the court order and respond to Coinbase’s writ of mandamus this week.

In conclusion, Coinbase has urged the SEC to revise its proposed rulemaking on RIAs’ responsibilities to store client assets with qualified custodians, claiming that it unfairly targets crypto assets and fails to safeguard them properly. The exchange has suggested several revisions to the rule to protect investors, including defining state trust companies and other state-regulated financial institutions as qualified custodians and removing the ban on RIA client trades on crypto exchanges that are not qualified custodians.

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Coinbase vs SEC: Legal Battle Heats Up

by Blockchain News

Coinbase, the largest US-based cryptocurrency exchange, has been embroiled in a legal battle with the US Securities and Exchange Commission (SEC) over regulatory clarity for trading digital assets. On May 4th, Coinbase’s chief legal officer Paul Grewal announced that the US Court of Appeals for the Third Circuit has responded to the complaint against the SEC, marking a significant development in the ongoing legal battle.

The court’s response was a text-only order, instructing the SEC to respond to Coinbase’s writ of mandamus within ten days. A writ of mandamus is a court order that compels an inferior government official to fulfill their official duties properly. The court also granted Coinbase the right to file a reply to the SEC’s response within seven days of the filing.

Coinbase filed a lawsuit in April, requesting that the court compel the SEC to publicly disclose its stance on a petition submitted several months prior. The petition posed 50 specific questions about the regulatory treatment of certain digital assets, covering topics such as how tokens are classified as securities and seeking clarification on various other matters.

Despite the lack of public response to the petition, the SEC has increased enforcement and issued warnings to crypto exchanges. The commission has even issued a Wells notice to Coinbase in the past, warning the company that the SEC may follow with an enforcement action.

Due to the ongoing regulatory issues faced by the company, US investment bank Citigroup has downgraded the shares of the crypto exchange from “buy” to “neutral,” and has also lowered its price target. The bank has cited “too many unknowns” as the reason for this downgrade. According to Citi analyst Peter Christiansen, the downgrade will remain in place until the regulatory “rules of the road” are better established in the United States.

The legal battle between Coinbase and the SEC highlights the need for greater regulatory clarity in the cryptocurrency industry. While the industry has seen rapid growth in recent years, the lack of clear guidelines from regulatory bodies has led to confusion and uncertainty for businesses and investors alike. As the battle between Coinbase and the SEC continues, it remains to be seen how the regulatory landscape for digital assets will evolve in the United States and beyond.

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Coinbase executive discovers ChatGPT jailbreak

by Blockchain News

An Executive from Coinbase Has Discovered a “Jailbreak” for the ChatGPT AI Tool, Which Predicts Bizarre Cryptocurrency Price Scenarios

Coinbase’s chief of business operations, Conor Grogan, recently made a statement in which he claimed to have found a “jailbreak” for the artificial intelligence application ChatGPT. Grogan published a snapshot of the findings from ChatGPT in a tweet on the 30th of April. The results revealed that the tool had given a 15% likelihood that Bitcoin will “fade to irrelevancy” by the year 2035, with values plummeting over 99.99%. Grogan’s tweet was sent on April 30. Additionally, ChatGPT predicted that there is a 20% chance that Ether will become irrelevant and approach price levels close to zero by the year 2035. Even less self-assured was the tool about Litecoin and Dogecoin, assigning odds of 35% and 45%, respectively, for each currency to fall to a value close to zero.

The artificial intelligence tool known as ChatGPT generates replies to prompts by using natural language processing. Grogan used the program to assign probability to a variety of political forecasts and other situations, including as the influence of AI on humans, the presence of aliens, and religion. A crazy forecast was made on ChatGPT that “aliens have visited Earth and are being covered up by the government.” This prediction was given a chance of 10%.

Grogan is a dedicated user of ChatGPT, and he provided others with a script that replicates the prompt that he used to build the tables. He came to the conclusion that the tool is “generally” a “big fan” of Bitcoin but is “more skeptical” when it comes to other cryptocurrencies.

As a tool for anticipating price movements and other trends in the cryptocurrency field, ChatGPT has gained a significant amount of popularity in recent months. The forecasts that it makes, however, should be taken with a grain of salt since they are based on probabilities and are not a guarantee of the future performance of the asset. Grogan’s discovery of a “jailbreak” also raises the possibility of a security breach since it enables the tool to make more accurate and possibly sensitive predictions.

In general, the use of artificial intelligence technologies inside the cryptocurrency market, such as ChatGPT, sheds insight on the expanding function of technology within the sector. As more traders and investors look to these tools for insights and forecasts, it will be crucial to keep in mind the limits of these tools as well as the possible hazards that they pose.

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Kraken Fights IRS Over Customer Information

by Blockchain News

Kraken, the popular crypto exchange, is contesting the United States Internal Revenue Service’s (IRS) demand for critical exchange user information, citing it as an “unjustified treasure hunt.” According to Bloomberg, the crypto exchange has requested federal court intervention in San Francisco to ask the IRS to back off from its demand for customer information.

Kraken’s pushback against the IRS comes in response to the agency’s February summons, which demanded additional user information to identify Kraken accounts that did at least $20,000 of cryptocurrency trading in any single year between 2016 and 2020. The exchange claims that the IRS has gone “far beyond” its intrusive summons, and its demands for customer information are not justified.

Kraken’s request for federal court intervention cited Coinbase’s case from 2017, where the tax agency scaled back its initial demand after Coinbase’s continuous refusal. In the Coinbase case, U.S. District Judge Jacqueline Scott Corley decided that the summons sent to more than 14,000 customers of the exchange wasn’t too intrusive because the IRS had a valid reason to look into taxpayers who might not be disclosing their Bitcoin (BTC) gains.

Kraken’s lawyers claimed that the IRS has gone “far beyond” the rules set by Judge Corley in the Coinbase case. Kraken joined Coinbase in its efforts to push back against growing regulatory scrutiny by American regulators. Coinbase is currently fighting its own battle against the U.S. Securities and Exchange Commission (SEC) over offering crypto staking services.

The SEC alleged that staking services offered by Kraken, Coinbase, and other platforms violate securities law. While Coinbase settled with the SEC for $30 million for offering staking services, it has decided to head to court for its IRS battle.

The growing regulatory scrutiny has become a growing concern for crypto companies in the U.S. The likes of Coinbase CEO Brian Armstong and USD Coin issuer Circle CEO Jeramy Allaire have warned that the growing pushback from regulatory bodies will force budding crypto companies to move offshore.

In conclusion, Kraken is fighting against the IRS’s demand for customer information, citing it as an “unjustified treasure hunt.” The exchange has requested federal court intervention, pointing out that the IRS has gone “far beyond” its intrusive summons. With growing regulatory scrutiny, Kraken and Coinbase’s pushback against American regulators could become a growing trend in the crypto industry, with more companies moving offshore to avoid regulatory barriers.

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