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Coinbase Responds to the New York Crypto Exchange Inquiry AG

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Coinbase officially responded to the prosecutor's cryptocurrency swap inquiry New York General Eric Schneiderman, and the San Francisco-based startup chose to share part of this response with the public.

The five-page letter, written by Mike Lempres-Coinbase, Chief Legal and Risk Officer, is an abridged version of the one that the company sent to the Office of the Attorney General (OAG), but it does contain some glimpses notable of the company's explosive growth over the last 18 months.

Lempres wrote that the company has increased the trading capacity of its trading platforms by 1,000% in the last two quarters, which it said required a "substantial reorganization" of the code base of l & # 39; company. In the past, Coinbase – as well as other major stock exchanges – has struggled to stay online during periods of high market volatility.

He also revealed that Coinbase now has more than 300 employees in its four offices and nearly 1,000 full-time employees, including specialized contractors. About 20% of these employees work in the firm's compliance division, highlighting how tough the regulatory landscape is for companies operating in this fledgling industry.

Coinbase did not provide detailed financial information in the public version of its letter, but it revealed that its customers exchanged more than $ 150 billion of assets on its platform. form and "function as a profitable and autonomous business". itself a growing company.

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As reported by the NCC, the company would have an internal valuation of $ 8 billion, or $ 6.4 billion more than the official value of $ 1.6 billion that it had received in August 2017 when it closed a $ 100 million round.

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Lempres wrote that the full version of the letter had been forwarded to the office of the Auditor General through a secure end-to-end file exchange service and requested that the agency provides the data confidentially.

It is unclear whether any further exchanges on the part of the OAG investigation resulted in formal responses, which, according to the agency, were fully due on May 1.

However, at least one San Francisco-based trading platform, Kraken, which does not serve New York customers, said unequivocally that it was not planning to bow to the "insulting" request "of the BVG and criticized" Kowtowing "to the regulators.

Picture of Coinbase.

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