San Francisco-based cryptocurrency exchange Coinbase is disabling margin trading on the Pro platform, in response to the new guidance from the US Commodity Futures Trading Commission (CFTC).
The exchange pointed to the “recent changes in our regulatory environment” but didn’t specify which guidance led to the move.
All open limit orders for those customers using credit will be canceled by 2 pm PT today, and no new margin trades will be allowed to take place anymore while the product will be taken offline next month once all the existing margin positions have expired.
Margin is borrowing funds from the exchange, which allows traders to leverage their positions to amplify their returns. Paul Grewal, Chief Legal Officer, in the official announcement said,
“We believe clear, common-sense regulations for margin lending products are needed to protect and provide peace of mind to U.S customers.
We look forward to working closely with regulators to achieve this goal.”
Amidst this, Coinbase’s app has found a place among the Apple App Store’s top 100 free apps. At 73rd spot, Coinbase has jumped about 40 ranks in just one day as the price of Bitcoin rallies towards new highs, trading above $19,000.
In terms of the free finance app, Coinbase has a place at the 5th spot behind the popular apps Square’s Cash App, PayPal, Venmo, and Robinhood, three out of four of which also allow trading in BTC and cryptos.