Coinbase CEO Sees China’s Digital Payments Industry as ‚Ambitious Adversary‘

Digital Asset Market Faces Headwinds

• Coinbase CEO considers China’s digital payments industry an ‘ambitious adversary’
• CFTC issues digital asset clearing warning and agency member calls for rulemaking
• Bybit becomes latest crypto exchange to exit Canada; SEC settles Coinbase insider trading scheme charges with Wahi brothers; Binance considers allowing investors to hold collateral in banks

Coinbase CEO Considers China’s Digital Payments Industry an ‚Ambitious Adversary‘

Coinbase CEO Brian Armstrong recently highlighted the competitive environment that he believes exists between China’s rapidly advancing digital payments industry and companies like Coinbase. Armstrong noted that while many of these Chinese companies have been able to enjoy the benefit of size and scale, they also present a formidable challenge due to their innovation and ambition. He further stated that in order to remain competitive, Coinbase must continue to innovate and evolve its product offerings.

CFTC Issues Digital Asset Clearing Warning

The Commodity Futures Trading Commission (CFTC) recently issued a statement warning market participants about potential risks associated with digital asset clearing services. The agency urged investors not to engage in any activity related to digital assets without taking into account the potential legal, operational, credit, market, liquidity, reputational or other risks involved. In addition, CFTC Commissioner Rostin Benham called for more clarity on existing regulations regarding digital assets as well as more rulemaking in this space.

Bybit Becomes Latest Crypto Exchange To Exit Canada

Bybit recently became the latest cryptocurrency exchange to announce its exit from Canada due to regulatory uncertainty surrounding the country’s new cryptocurrency regulations. The company said it will cease operations in Canada by June 30th citing concerns over “the lack of clarity provided by regulators” on how its platform should comply with local laws and regulations.

SEC Settles Coinbase Insider Trading Scheme Charges With Wahi Brothers

The US Securities and Exchange Commission (SEC) recently announced that it has settled charges against the Wahi brothers who were allegedly involved in an insider trading scheme related to Bitcoin futures contracts offered by Coinbase Global Inc., back in 2017. According to the complaint filed by the SEC, Raghav Mohan Wahi had gained access to confidential information about Coinbase’s upcoming listing of Bitcoin futures before they were publicly announced which allowed him and his brother Gaurav Mohan Wahi realize profits totaling $541 thousand dollars through illicit trades ahead of time. The two brothers have agreed pay disgorgement plus interest totaling $541 thousand dollars as well as civil monetary penalties of $50 thousand each without admitting or denying guilt