Coinbase suspends Bitcoin-backed loans
Coinbase will terminate its “Borrow” lending service that allows US customers to secure their loans with Bitcoin. According to The Cardano Times Twitter data, the company will stop lending service Coinbase Borrow starting May 10, without giving reasons.
A Coinbase spokesperson told the media. Cointelegraph that
“We constantly look at each of our company’s products to ensure we prioritize the service that our customers care about most.”
Coinbase Borrow is a service that allows users to borrow from Coinbase up to 40% of their Bitcoin holdings. There is a maximum limit of $1 million, there are no credit checks, and users are charged approximately 9% annually.
Coinbase received a notice from the SEC.
It is possible that the termination of the service may be caused by the company. Received a warning letter from the US SEC that the Company may operate in violation of US securities laws.
The CEO of Coinbase also came out to explain the reason for the founding of Coinbase via YouTube channel, clarifying that the company Company establishment and legal proceedings It has always partnered with the legal sector and calls for clear crypto regulations in the US. as well as calling for rules of justice
Coinbase went public in 2021, and since then Coinbase has faced legal challenges with the US government. Especially the issue of the lack of a clear legal framework for the provision of crypto services.
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