The brisk trading of cryptocurrencies has given Coinbase a profit jump. The largest US cyber currency exchange said net profit was $1.2 billion (1.12 billion euros). In the same period last year there was a loss of $79 million.
After the results were announced on Thursday, shares fell three percent after ending regular trading with a gain of almost nine percent.
The US approval of the first exchange-traded fund (ETF) to invest directly in Bitcoin temporarily pushed the oldest and most important internet currency to an all-time high above $73,800 in recent months. According to insiders, applications for the market introduction of similar ETFs on the second most important cyber currency Ethereum currently have little chance of being approved.
Either way, Coinbase is facing numerous lawsuits. The US Securities and Exchange Commission accuses her of operating an unlicensed trading platform, among other things, because cryptocurrencies are securities. These are subject to regulation by the SEC. The boss, Gary Gensler, wants to keep the sector, which has so far hardly been monitored and which he accuses of ‘Wild West methods’, in line. Some customers have also taken Coinbase to court over its lack of a US license.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
