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Coinbase Updates Its Pledge Service Under Regulatory Pressure

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According to the news on March 11, under regulatory pressure, Coinbase is updating the terms and conditions of its pledge service. In an email to customers thi…

Coinbase Updates Its Pledge Service Under Regulatory Pressure

According to the news on March 11, under regulatory pressure, Coinbase is updating the terms and conditions of its pledge service. In an email to customers this Friday, Coinbase said that the pledge service will continue to be provided, but Coinbase will only serve as a service provider connecting pledge users, verifiers and agreements, and will also charge “transparent Coinbase fees”, The biggest change in the terms is that “users must now cancel the pledge before selling or transferring some assets, which makes the service of Coinbase more consistent with the type of pledge service that is native to the blockchain network. The assets that must be released from the pledge on Coinbase now are Solana (SOL), Cosmos (ATOM), Cardano (ADA) and Tezos (XTZ)”. Coinbase also reminded users that it may take “several hours or weeks” for any assets pledged on its platform to cancel the pledge, and the time required for transfer or sale depends on the agreement rules and the processing time of Coinbase “. （decrypt）

Terms and conditions of Coinbase’s updated pledge service: the pledge must be released before the asset is sold or transferred

Analysis based on this information:


Coinbase, one of the world’s leading cryptocurrency exchanges, is updating its pledge service under regulatory pressure. The pledge service, which allows users to pledge their cryptocurrencies as collateral to obtain loans or investments, will continue to be provided by Coinbase, but there are changes in the terms and conditions. Coinbase will now only serve as a service provider connecting pledge users, verifiers, and agreements and will charge “transparent Coinbase fees”.

The most significant change in the terms is that users must now cancel the pledge before selling or transferring some assets, which makes the service of Coinbase more consistent with the type of pledge service that is native to the blockchain network. The assets that must be released from the pledge on Coinbase now are Solana (SOL), Cosmos (ATOM), Cardano (ADA), and Tezos (XTZ). This change seems to be aimed at preventing users from using pledged assets as collateral to obtain loans or investments while still being able to sell or transfer them.

In addition, Coinbase reminded users that it may take “several hours or weeks” for any assets pledged on its platform to cancel the pledge. The time required for transfer or sale depends on the agreement rules and the processing time of Coinbase. This is an important reminder for users who may need to cancel their pledges quickly to sell or transfer their assets.

This update to the pledge service of Coinbase is likely in response to regulatory pressure. Governments around the world are increasingly scrutinizing cryptocurrencies and the platforms that facilitate their trading, investment, and lending. This is especially true for platforms that offer services similar to traditional financial institutions, such as loans or investments. By updating its pledge service, Coinbase may be trying to avoid regulatory action or penalties.

In conclusion, Coinbase’s update to its pledge service under regulatory pressure is a sign of the increasing scrutiny faced by cryptocurrency exchanges and platforms. By serving only as a service provider and implementing stricter rules for cancelling pledges, Coinbase is attempting to comply with the regulations and avoid penalties. However, it remains to be seen whether this will be sufficient to satisfy regulators and to ensure the long-term viability of its pledge service.

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