Coinbase Exchange is one of the popular exchange out there that only accepts the cenrtalized and the VC sponsored chains to be listed in their internal marketplace. This has been one of their drawbacks and they are being far from decentralized and mostly being centralized exchange due to their operations.
Coinbase has breached many laws over the years, not only in USA but also in Russia and Kazakasthan. So in this article, I am going to point out some of the law breaches that are likely to affect them as a company. And they are likely to lose the licenses or even lose the status as an exchange.
So what are some of these law violations and why they are being this much careless and how they are planning to appeal against the same? Because unless they do something about it, there is no way this would be helping the exchange retain it's global status.
Let's talk about these law violations of the Coinbase Exchange.
Gary gensler has accused the Coinbase inc in his one of the tweets that the company has been running unregulated security exchange. Where the crypto are meant to be not treated as a legal tender. They are running the exchange to do so and also offering the financial withdrawals for the assets in collateral.
SEC has been trying to regulate variety of the crypto companies and the exchanges who are trying to manipulate with the market trends. And considering the regulation issues, it'd be reasonable to say coinbase has indeed acted like it but in turn they are filing back against the exchange instead. So that change is going to affect them within their own soil. You can check this case here.
Kazakhastan does not have any strong regulation as such and there are variety of the local laws that prevent the companies from trading the crypto. And they are in the process of releasing their own CBDC which means Coinbase are out there for the conflict with that too. Which in turn has caused them to have these violations.
It starts from lack of national securities violations where they are selling and letting the local buy the assets and also sell them in the marketplace. So this tells you how unsecure this can be for the exchanges to stay alive in the market with the violations like this that are coming.
You can check the case here.
Coinbase has the presence in the Russia and they are holding the data of the locals there. And they have not done any form of the govt regulations on the data that is stored for the sales or the marketplace orders that they have done. Which calls for the data breach. And for which they are being sued in the moscow too.
There is a million rubles of the law suite filed against them. And they are supposed to contest this and see if they can legally find ways or maybe end up paying the fine. Which is something that is likely to happen soon. So the data and the content localization rules apply to the exchange and we can see how that would affect them in upcoming times.
You can check out the case here.
Coinbase is acting likely a bully and using the centralized contracts and the contacts trying to manipulate the govts outside the US to have power over them too. So all of this would be working against someday and the exchange is likely to fall sooner or later.
Centralized exchanges are supposed to act under the rules of the govt where they are holding the marketplace. But if they continue to act like decentralized exchange and pretend to bully the govt and the consumers, it neither benefits them nor the people who use their services. And such legal violations are not going to help them in upcoming times.
