After cryptocurrency exchange Binance, announced that it was all set to launch margin trading, another exchange has entered the fray. In a conversation with The Block, Coinbase said that they were planning to introduce leveraged trading.
Discussing the development, Emilie Choi, VP of Business, Data & International at Coinbase said, “Margin lend borrow is definitely going to be a next big step for us, especially on the active trader side.” The portal noted that while greater risk is involved with trading on borrowed money, and while margin trading regulations in the US protect the market from a bad fallout, it is a bigger challenge when margin trading takes place in unregulated markets.
When asked, if the delay in introducing regulations has affected Coinbase from fleshing out plans, Choi said, “We still need to figure that out because there’s not a lot of regulatory clarity there right now in the US,” she said. “And so that, that is being discussed.”
When asked about Binance’s plans to introduce margin trading and how the exchange is eating into Coinbase’s “territory”, she said, “We couldn’t probably be more differentiated than them in terms of the focus on the fiat to crypto bridge and being that safe trusted center of the crypto economy. So I think they’re playing one game, we’re playing another.” She also suggested that they were less competitors and more friendly giants.
Coinbase is only going from strength to strength, since its inception. Recently, Coinbase announced that they had launched a new Visa debit card, Called Coinbase Card which allowed users to spend their cryptocurrencies, around the world. Presently, however, only Coinbase users in the United Kingdom are allowed to apply for the card.
The exchange had said, “Currently, the daily spending limit is £10,000. Feel free to contact [email protected] if you would like to change your daily spending limit. Additionally, there’s a monthly purchase limit of £20,000 and a yearly purchase limit of £50,000. There is a daily ATM withdrawal limit of £500.”
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