Coinbase Exchange has raised alarm among the crypto investors who are ready to see the next legal action against the Bybit crypto exchange or some Coinbase customers.
Coinbase is a top American cryptocurrency exchange that trades on the Nasdaq under the COIN ticker. This year, this exchange was sued by the US Securities and Exchange Commission (SEC) for offering unregistered securities and operating an unregistered stock exchange.
According to reports, the Commodities Futures Trading Commission (CFTC) requested some information from the Coinbase exchange about the customers using the Bybit crypto exchange.
Basically, the CFTC agency is investigating the Coinbase customers who used Bybit and also transferred funds between these two crypto exchanges.
A person familiar with this matter confirmed that the investigation is true and that the CFTC agency has nothing to do with the Binance exchange, and therefore filed a new case with its authority.
Coinbase Exchange confirmed via email to some specific customers that its customers’ data is secured and that it will not share information with any regulatory agency until it has found a critical issue or has to comply with the country’s rules and laws . Here it doesn’t mean that Coinbase won’t share any information with the CFTC authority, it just means that all those Coinbase customers who only used Bybit will soon be exposed.
Bybit exchange is a crypto exchange headquartered in Dubai that was founded in 2018. This exchange provides crypto services worldwide but is restricted in several jurisdictions including the US, UK, China, Singapore, etc.
As we know, anyone can buy virtual mobile numbers for a small fee to register on any international Crypto exchange, and we also know that the majority of crypto exchanges allow customers to transfer a limited amount of money every month .
Since there were no KYC restrictions at the majority of global crypto exchanges three years ago, people could easily access any crypto exchange through virtual mobile numbers and VPN services. And now it’s time for the regulators to find out all those people who exploited such open loopholes for personal benefits and unethical activities.
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