Coinbase Receives Subpoena from CFTC over Bybit
Coinbase has revealed that it received a subpoena from the United States Commodity Futures Trading Commission (CFTC) regarding the Bybit cryptocurrency exchange. Customers who use both Coinbase and Bybit have received this message. The CFTC is seeking information about these users’ accounts and transactions. Unless a court reverses the subpoena by November 30, Coinbase may have to provide this information to the CFTC.
Bybit’s Restricted Service and Recent Milestone
Bybit, based in Dubai, previously stated that it does not offer its services in the United States. However, reports suggest that users can access Bybit using a virtual private network (VPN). Interestingly, Bybit recently celebrated reaching 20 million users and described itself as a “top-three cryptocurrency exchange.” The exchange highlighted its licenses in the UAE, Kazakhstan, and Cyprus, which were obtained due to prudent risk management and enhanced Anti-Money Laundering (AML) compliance.
Bybit’s KYC Verification
In July 2021, Bybit announced that it would be implementing Know Your Customer (KYC) verification for its users. However, it is unclear when this verification process was actually implemented. By September 2022, Bybit had posted KYC instructions for its customers.
Hot Take: Coinbase Faces CFTC Subpoena over Bybit
Coinbase has been served with a subpoena from the CFTC regarding the Bybit cryptocurrency exchange. This raises concerns for customers who use both platforms as their account information and transaction activities may be disclosed to the CFTC. It remains to be seen whether Coinbase can reverse this subpoena through legal means before the deadline of November 30. Bybit, on the other hand, has recently celebrated a significant milestone of 20 million users and emphasized its licenses in multiple countries. The implementation of KYC verification by Bybit adds another layer of scrutiny to its operations.
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