top of page
  • Writer's pictureAmeis Regulatory Services

On March 19, the Commodity Futures Trading Commission (CFTC) ordered digital asset exchange operator Coinbase Inc. to pay $6.5 million following the determination of false, misleading or inaccurating reporting and wash trading between January 2015 and September 2018.


According to the CFTC release, Coinbase "recklessly delivered false, misleading, or inaccurate reports" concerning transactions in digital assets on the electronic trading platform it operated, failing to disclose that it operated more than one trading program and trading through multiple accounts.

Furthermore, transactions of these programs were found to match, resulting in trades between accounts and creating a potentially perceived volume and liquidity. According to the order, "transactional information of this type is used by market participants for price discovery, and potentially resulted in a perceived volume and level of liquidity of digital assets that was false, misleading, or inaccurate."


The CFTC defined wash trading as an operation that consists of entering into, or purporting to enter into, transactions to give the appearance that purchases and sales have been made, without incurring market risk or changing the trader's market position. The Commodity Exchange Act prohibits wash trading, also called Round Trip Trading and Wash Sales.



Recent Posts

See All

Product Corner - VAs : Quèsaco

Virtual Assets (VAs) or crypto assets refer to : “any digital representation of value that can be digitally traded, transferred or used for payment. It does not include digital representation of fiat

Upcoming Regulatory Deadlines to Watch

10 Aug 2023 - Deadline to submit comments to FCA Guidance Consultation (GC23/1) on crypto asset financial promotions. 5 Sep 2023 - Effective date of SEC Cybersecurity Risk Management, Strategy, Govern

Comments


bottom of page