Previously, users were required to send money over Coinbase exchange. Usually, the capital transferred through the banks took nearly 1 hour for completion, before showing up on the lists. Users then had to stake it into exchange to finally send it over to Binance or any other platform, with the entire process being charged a small amount of money.
In the guidelines, it was also mentioned that Coinbase held the right to modify the rules, but failed in sharing the detail with its users. For all the commonwealth countries, along with USA, Coinbase now charges nearly 4% of every transaction being carried out. This new add-on came without any notification being shared with users.
An older version of the agreement allowed a hassle-free and less time-consuming service to its users. The newly introduced guideline has charged transactions heavily, along with freezing many transaction amounts for over five days, hampering Bitcoin transactions on the exchange.
According to the new guidelines issued by Coinbase, the funds transferred over the exchange platform were sealed for a duration of five calendar days in the USA and the European Union. These newly introduced conditions have made it impossible to move funds to Coinbase Pro.
Senders were left only with the option of converting capital funds straight into Bitcoin, with a heavy fee of 4% on the overall transaction. This move was criticized by the crypto-community, as it allowed users to access any other personal account and interchange the capital with Bitcoin and finally share it with any account across the globe.
In response to the uproar on Reddit, another redditor, Asdafari, commented,“I dis this 2 weeks ago no problem. The issue seems to affect certain countries or users (lvl of verification etc.)”
GamergrillzzzxXxX shared,“I’ve been waiting for like 10 days now for my deposit.”
Brian Armstrong: Institutions Moving Hundreds of Millions of Dollars in Crypto to Coinbase Every Week
Coinbase CEO Brian Armstrong says institutional players are depositing huge amounts of crypto into the company’s custody platform.
In a new tweet touting the company’s acquisition of the crypto custody platform Xapo, Armstrong says institutional customers are sending $200 to $400 million in crypto to Coinbase Custody every week.
Coinbase unveiled a push to bring billions of dollars of Wall Street money into Bitcoin and crypto late last year, with the launch of Coinbase Custody and its over-the-counter (OTC) trading desk.
Vice president and general manager Adam White talked about the company’s master plan for institutions in an interview with CNBC.
“We think this can unlock $10 billion of institutional investor money sitting on the sideline. We’re seeing a rapid increase in attention awareness and adoption in the cryptocurrency market.”
The new numbers from Coinbase coincide with a recent report from Grayscale, the world’s largest cryptocurrency asset manager.
The firm reported a new all-time high in volume in Q2 2019 and hit $2.7 billion in assets under management, thanks in large part to institutional investors.
“Grayscale assets under management (AUM) nearly tripled: Grayscale AUM grew from $926 million at the end of Q1 2019 million to $2.7 billion at the end of Q2, and all ten investment vehicles included in the Grayscale family of products generated positive performance, net of fees for the first time…
Inflows nearly doubled quarter-over-quarter, from $42.7 to $84.8 million, demonstrating that the recent rally in digital asset prices is supported by fresh investment and despite the fact that the Grayscale Bitcoin Trust was temporarily closed to new investment throughout May and June…
This quarter, institutional investors comprised the highest percentage of total demand for Grayscale products (84%) since we began publishing this report in July 2018.”
Since hitting the all-time high, Grayscale AUM dipped along with the price of Bitcoin, with the figure now standing at $2.5 billion.
Dash Core Group’s Ryan Taylor laments communication gap between Coinbase and DCG
Coinbase, the San Francisco-based cryptocurrency exchange, recently announced that the organization was “exploring” the idea of adding new virtual assets to its platform, a proposal which included Dash among 7 other cryptocurrencies.
In a recent Q&A, Ryan Taylor, CEO of Dash Core Group, was questioned about the development of Dash in 2019 and his views on the current situation that was developing between Dash and Coinbase, after the exchange made the announcement.
According to Taylor, Coinbase has dragged itself into a complicated situation after the listing of Bitcoin Cash. The Brian Armstrong-led exchange had been accused of insider trading with internal investigations being carried forward. However, all investigations were inconclusive.
The CEO of Dash Core Group said,
“What I can tell you is that I think Coinbase’s publicly facing communication changed substantially after that point in time. I think that their compliance department may have really attempted to address this issue. What it means for teams like us is that the communication tends to be very one-way with them relative to other exchanges.”
Taylor added that there was not a lot of information coming from the exchange’s side at the moment regarding the time frame Coinbase was aiming for. The exchange did not even give any indication of whether it wanted to implement Dash or not. Taylor conceded that the community and the DCG will get to know at the same time if Dash is ever integrated to Coinbase’s platform in the near future.
“All I can disclose really is that we’re communicating with them and replying to their requests but I don’t think that we will get a lot of feedback from them on how that is going, whether they would list us, when they would list us.”
Coinbase Custody Acquires Cryptocurrency Wallet Xapo
Cryptocurrency exchange Coinbase has announced that it has acquired cryptocurrency wallet and custody service provider, Xapo.
In a Medium post, the exchange said that in just one year Coinbase Custody has grown to over $7 billion in Assets Under Custody (AUC) stored on behalf of more than 120 clients in 14 different countries.
The exchange said, “Through our consumer products, Coinbase has helped more people experience their first crypto transactions than any other company. Like Xapo, we share the goal of making Bitcoin and other cryptocurrencies accessible in a way that’s secure, safe and compliant with local laws. Through the acquisition of Xapo’s institutional businesses, we’re now proud to act not only as the gateway for millions of people to cryptocurrency, but also as the world’s largest and most trusted steward of digital assets.”
Coinbase Custody has only gone from strength to strength. In June this year, Coinbase Custody Chief Executive Officer (CEO) Sam McIngvale and Coinbase Chief Information Security Officer (CISO) Philip Martin, visited the United Kingdom, to discuss “the institutional cryptoeconomy with a range of prospects and clients.”
They were quoted as saying, “There’s a narrative out there that institutional-grade services don’t exist in crypto. This isn’t true. Coinbase Custody is a regulated, insured and secure custodian. We have $1.3bn Assets Under Custody (AUC) and expect to hit $2bn soon. We have no intention of stopping there.”
Discussing security, Martin said, “We really built our security by drawing on a range of different technologies and systems. We’re always adapting, that is what gives us this strong security foundation.”
Last year, in October, the New York State Department of Financial Services (DFS) had approved the license application for Coinbase Custody Trust Company LLC, a Coinbase subsidiary to operate as a limited purpose trust company.