Coinbase Updates Pledge Service to Comply with Regulatory Pressure

03/11/2023 02:56 • Metaverse Matters • 91 views

According to the news on March 11, under regulatory pressure, Coinbase is updating the terms and conditions of its pledge service. In an email to customers this Friday, Coinbase said that the pledge service will continue to be provided, but Coinbase will only serve as a service provider connecting pledge users, verifiers and agreements, and will also charge “transparent Coinbase fees”, The biggest change in the terms is that “users must now cancel the pledge before selling or transferring some assets, which makes the service of Coinbase more consistent with the type of pledge service that is native to the blockchain network. The assets that must be released from the pledge on Coinbase now are Solana (SOL), Cosmos (ATOM), Cardano (ADA) and Tezos (XTZ)”. Coinbase also reminded users that it may take “several hours or weeks” for any assets pledged on its platform to cancel the pledge, and the time required for transfer or sale depends on the agreement rules and the processing time of Coinbase “. （decrypt）

Terms and conditions of Coinbase’s updated pledge service: the pledge must be released before the asset is sold or transferred

Analysis based on this information:

Coinbase, one of the leading cryptocurrency exchanges, has announced an update to its pledge service amidst regulatory pressure. In an email sent to its customers, it stated that it will continue to offer the pledge service, but with some restrictions. The company will now only serve as a service provider, creating a connection between pledge users, verifiers, and agreements while charging transparent Coinbase fees. This is the company’s way of complying with regulators and putting the necessary measures in place to avoid legal troubles.

One significant change in the updated terms is the mandatory cancellation of pledges before selling or transferring assets. This adjustment aims to make Coinbase’s pledge service more consistent with the type of pledge service that is present on the blockchain network. Specifically, the assets required to be released from pledges on Coinbase are Solana (SOL), Cosmos (ATOM), Cardano (ADA), and Tezos (XTZ).

Furthermore, Coinbase has made it clear that the cancellation process may take several hours to weeks, depending on the agreement rules and processing time. This is an important reminder to users who may not be familiar with these processes and is another layer of control that Coinbase has put in place to avoid any legal issues that may arise from misuse of the service.

The move by Coinbase comes in the wake of increased regulatory scrutiny of the cryptocurrency industry. Governments across the world have become increasingly concerned about the lack of oversight and transparency in the sector. As such, exchanges like Coinbase have felt the heat from regulators who want to ensure that they comply with established laws and regulations. Coinbase’s update to its pledge service is a step in the right direction towards compliance, and it shows the company’s willingness to collaborate with regulators to ensure that its services are transparent and trustworthy.

In summary, Coinbase’s update to its pledge service reflects the company’s compliance with regulatory requirements, which is a crucial aspect of the cryptocurrency industry. Understanding the terms and conditions of the service and knowing the assets that must be released from pledges are important for users to make informed decisions. The reminder by Coinbase about the potential delays in the cancellation process further emphasizes the importance of transparency in the sector.

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