Coinbase, a leading cryptocurrency exchange, has announced the complete termination of its Borrow program for retail customers, effective November 20, 2023. The program allowed retail users to obtain cash loans using Bitcoin as collateral, but it was restricted from taking new loans since May. This decision comes amidst a legal battle with the U.S. Securities and Exchange Commission (SEC), which sued Coinbase for alleged regulatory failures. The termination aims to focus on serving institutional clients and core products, with retail customers given until November 20 to settle outstanding loan balances. Failure to do so will lead to Coinbase selling the Bitcoin collateral. Despite offering support and a four-month repayment period, managing loan repayments may be challenging for some customers, given cryptocurrency market volatility. This move highlights potential regulatory risks associated with cryptocurrency offerings and could impact customer sentiment and engagement with the platform. The industry closely observes Coinbase's response to the SEC lawsuit as it could set a precedent for the cryptocurrency market's regulatory landscape.

Hosted on Acast. See acast.com/privacy for more information.