Crypto exchange Coinbase says it does not engage in proprietary trading, a speculative investment practice that the federal regulation known as the Volcker Rule restricts because of its role in the 2008 financial crisis.
In a new blog post, the California-based firm refutes a claim by The Wall Street Journal that it uses its own money to speculate on crypto assets.
The newspaper in an article published on September 22nd says that Coinbase hired at least four senior traders to use the company’s own funds to trade, stake and lock up cryptocurrencies for profit. The report says that people at Coinbase describe the activity as proprietary trading.
“Coinbase does, from time to time, purchase cryptocurrency as principal, including for our corporate treasury and operational purposes. We