{"id":119666,"date":"2020-11-25T03:03:42","date_gmt":"2020-11-25T00:03:42","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/coinbase-pro-will-disable-margin-trading-starting-tomorrow\/"},"modified":"2020-11-25T03:03:42","modified_gmt":"2020-11-25T00:03:42","slug":"coinbase-pro-will-disable-margin-trading-starting-tomorrow","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/coinbase-pro-will-disable-margin-trading-starting-tomorrow\/","title":{"rendered":"# Coinbase Pro will disable margin trading starting tomorrow"},"content":{"rendered":"

“# Coinbase Pro will disable margin trading starting tomorrow <\/strong>”
\n<\/p>\n

U.S. crypto exchange Coinbase Pro announced today that customers would not be able to use margin trading on the platform beginning on Wednesday.<\/p>\n

According to the Coinbase blog, Chief Legal Officer Paul Grewal said<\/a> that no new margin trades would be allowed starting on Nov. 25 at 2:00 PST. The exchange stated that it would take the product offline in December \u201conce all existing margin positions have expired.\u201d<\/p>\n

\u201cWe believe clear, common sense regulations for margin lending products are needed to protect and provide peace of mind to U.S customers,\u201d said Grewal. \u201cWe look forward to working closely with regulators to achieve this goal.\u201d<\/p>\n

Grewal said the move was in response to \u201cnew guidance from the Commodity Futures Trading Commission,\u201d or CFTC. In March, the commission clarified its position on the \u201cactual delivery\u201d of assets to include crypto bought using leverage trading or other methods. The CFTC\u2019s guidelines stated there would be a 28-day deadline for physical delivery, allowing buyers to use any purchased digital asset after that period.<\/p>\n

When participants trade futures in traditional markets, they are betting on the future price action of an underlying asset. If they hold those futures all the way through settlement, they end up receiving the underlying asset, physically delivered to them. However, the CFTC guidelines clarify that for digital assets, the parties selling tokens and those acting as facilitators \u2014 which would include Coinbase \u2014 would not have any control over crypto used for margin trading once it has been delivered to the customer.<\/p>\n

It’s unclear what impact the move will have on markets, but some pundits suggest it may cool down the recent price run. <\/p>\n

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Based on CFTC guidance Coinbase Pro is removing margin trading.<\/p>\n

Huge blow to US crypto and likely to drive price impact as it will take a lot of money off the table:https:\/\/t.co\/8lYHh9PiVf<\/a><\/p>\n

Wonder how long before other US exchanges are forced to comply.<\/p>\n

\u2014 Adam Cochran (@AdamScochran) November 24, 2020<\/a><\/p><\/blockquote>\n