Coinbase Suspends 80 Non-USD Trading Pairs to Boost Liquidity
Digital asset exchange Coinbase has announced that it will suspend trading on 80 non-USD trading pairs in an effort to improve liquidity on its platform. The delisted pairs include assets like Bitcoin (BTC), Tether (USDT), and the Euro. Coinbase stated that this decision follows previous efforts to monitor markets and improve market health and liquidity.
“As previously announced, we have suspended trading on a number of non-USD markets across Coinbase Exchange, Advanced Trade, and Coinbase Prime.”
However, users affected by the suspension in eligible regions can still access these trading pairs through the platform’s more liquid USD order books using their USDC balances. Alternatively, affected users can trade these pairs with USD unification by utilizing their USDC balances to trade in both USD or USDC order books.
In April, Coinbase introduced the USDC unification feature, allowing users to utilize their USDC balance to trade on USD books. The company revealed that the 80 non-USD markets make up a negligible portion of its global trading volumes.
Centralized Exchange Volume Declines
Centralized exchanges (CEX) are popular among crypto traders due to their high liquidity and expanding markets. However, they have faced criticism for their similarities with traditional financial intermediaries.
Coinbase, the largest exchange by volume in the United States, has been focused on improving liquidity across its dominant markets. In September, it suspended 41 non-USD trading pairs for the same reason. Liquidity remains a concern as the total volume continues to decline.
In Q3 2023, Coinbase reported spot trading volumes of $76 billion, a 52% drop compared to the previous year. Regulatory issues with the Securities and Exchange Commission (SEC) have also affected investor confidence. Coinbase, along with Binance, is facing lawsuits from the SEC for alleged violations.
Hot Take: Coinbase Takes Steps to Improve Liquidity Amid Regulatory Challenges
Coinbase’s decision to suspend 80 non-USD trading pairs is aimed at boosting liquidity on its platform. This move follows previous efforts to monitor markets and improve market health. While affected users can still access these trading pairs through alternative methods, the suspension reflects Coinbase’s commitment to enhancing liquidity across its dominant markets.
Additionally, regulatory issues with the SEC have created challenges for Coinbase and other exchanges. These legal battles have impacted investor confidence and may have contributed to the decline in trading volumes. As Coinbase continues to navigate these regulatory hurdles, it remains focused on providing a seamless trading experience for its users while complying with legal requirements.
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