Coinbase To Go Public By April As It Reveals Plan Extension
The digital asset space has been anticipating the conclusion of Coinbase’s plans of going public. However, with new reports, the firm has extended its plans to April due to some new challenges. Coinbase, one of the digital space’s favorite exchanges, revealed plans of going public some months ago, which got many investors’ attention, especially with cryptocurrencies’ widespread success.
Recently, the firm revealed that it values around $68 billion currently, showing the company’s immense growth over the years, especially since both institutional and small-scale investors highly demand cryptocurrencies at these times. The exchange’s plan to go public is now coming later than most people expected due to some reasons.
Coinbase extends going public to April
Sources revealed that the plan of Coinbase to go public this month is no longer feasible. Coinbase, one of the industry’s oldest firms, explained that it was going public via a direct listing, which it filed sometime in February. The inside source revealed that Coinbase was supposed to go public this month, but that would not happen as the plans have ‘slipped.’.
The source did not explain why the plans changed, and Coinbase has refused to speak on the issue. Some claim that the exchange’s bigger challenge is the growing regulatory problems for the crypto-related firm. This could be why the extension as the US plans to bring stricter measures for crypto service providers.
The firm was sanctioned by a top US regulator, the Commodity Futures Trading Commission, for the method Coinbase used in handling volumes and trades. The parties have agreed to settle, and Coinbase would have to pay $6.5 million as a fine.
The regulator explained that Coinbase did not handle the recorded trades well, especially around 2015 and 2018, when the trading platform was still called GDAX. Things have changed since then, and Coinbase has also changed the previous platform to Coinbase Pro, which is increasingly popular amongst professional traders.
Firm battles with regulatory problems
The regulator raised many allegations, one of which claimed that Coinbase delivered false and misleading or inaccurate reports about digital assets. The firm refused to accept nor deny the claim but has agreed to pay the settlement. Jeff Roberts, via Twitter, shared some information about the regulatory problems the trading platform is currently facing.
The source shared how the regulator fined the company $6.5 million and how the exchange might have had no jurisdiction over crypto trading. He explained that the firm did not reveal the party behind the wash trading while adding that its issues are still ongoing.
One of the claims was that Coinbase was involved in wash trading, meaning that it traded with itself to increase trading volumes. More traders are attracted to platforms with high trading volumes, leading to many firms fraudulently increasing their volumes by the trading.
The regulator added that the firm manipulated the market for its benefit but that CFTC does not have the jurisdiction to sanction the trading platform based on that aspect. Things are currently difficult for the company, which might be the reason for the direct listing extension.
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