Coinbase has issued a recent warning for its consumers about the possible delisting of around six tokens. These cryptocurrency tokens are associated with the decentralized applications and protocols that are hosted on the Ethereum network.
Coinbase is facing regulatory pushback from the US government on account of matters related to the unregistered securities investigation. Recently, Coinbase CLOs have issued a statement expressing their dissatisfaction regarding the regulatory pushback of the government.
The firm has recently reported that tokens that are nominated for a possible delisting. According to the official list, Ethereum tokens like OMG network, YFII, RLY, REP, LOOM, and MIR are the ones that are set to go on the chopping block.
Recently, Coinbase has faced issues with the regulators, much like other cryptocurrency organizations. However, Coinbase has not issued any specific reasons to account for the delisting of these Ethereum-based tokens thus far.
Crypto Exchanges are Facing Regulatory Pressure
Since the start of the current year, SEC and other government officials have increased their crackdown on the cryptocurrency sector. Some of the projects, which are already affected by this regulatory pushback, include Paxos and Ripple Labs.
However, Coinbase is a centralized and regulated cryptocurrency exchange that is also a publicly listed company on NASDAQ. In its recent blog, Coinbase has shared the reason for the possible delisting.
Coinbase officials have maintained in the past that the firm uses eligibility criteria for listing any altcoins on its platforms. The firm also affirmed that it keeps monitoring all listed altcoins to make sure that they are compliant with their requirements.
Therefore, whenever the firm detects any issues with any altcoin project, it delists them. Coinbase has maintained that the reason for delisting these Ethereum tokens is an account of changes in the qualification criteria that these tokens no longer fulfil.
All Listed Tokens on Coinbase must Comply with the Listing Policies of the Company
Coinbase shared in a previous blog post added in 2021 that all the listed tokens on the platform must comply with several criteria. Some of these criteria are that tokens should comply with all the centralization requirements of the trading platforms. Another important eligibility criterion is all altcoins traded on Coinbase must have a real utility.
Coinbase officials also ensure that the code of a given cryptocurrency project is secure or not before listing it on their forum.
Meanwhile, Coinbase also researches the team behind the project to ensure that they are reliable and not going to conduct any fraud with the investors. In case a cryptocurrency project has introduced itself as an unregistered security, Coinbase officials do not list it on their trading platform.