Langgam Pos - Coinbase has reported a revenue of $1.4 billion for the second quarter of 2024, reflecting notable progress in the regulatory landscape for cryptocurrency in the United States.
Despite a 27% decrease in transaction revenue quarter-over-quarter to $781 million, Coinbase saw a significant increase in subscription and service revenues, which grew 17% to $599 million.
According to Bitcoin.com on August 3, 2024, the company’s diversified revenue streams contributed to a net profit of $36 million. However, this quarter was also affected by a pre-tax unrealized crypto asset loss of $319 million due to fluctuating crypto asset values.
In addition to financial performance, Coinbase has emphasized its focus on product innovation, particularly in enhancing the utility and accessibility of its platform. The company reported a 300% increase in transactions quarter-over-quarter on Base, its Layer 2 solution, and expanded its offerings with the introduction of a smart wallet.
These developments are part of Coinbase’s broader strategy to reduce friction in on-chain transactions and promote wider cryptocurrency adoption. Additionally, the company highlighted the expansion of USDC facilitated by its partnership with Stripe.
On the regulatory front, Coinbase has made significant strides in advocating for clearer crypto regulations in the U.S. The company supports the "Stand With Crypto" initiative, which has garnered over 1.3 million supporters.
Coinbase also views the approval of Ethereum ETFs in the U.S. and USDC’s compliance with the EU’s MiCA framework as crucial milestones for establishing a clearer regulatory environment for the crypto industry. Furthermore, Coinbase has reported its Q2 2024 earnings on-chain.
Disclaimer:
Investment decisions are the responsibility of the reader. Study and analyze before buying and selling cryptocurrencies. Langgampos.com is not responsible for gains or losses arising from investment decisions.
UK Fines Coinbase Subsidiary for License Violations
The UK’s Financial Conduct Authority (FCA) has imposed a £3.5 million ($4.3 million) fine on CB Payments Ltd, a Coinbase subsidiary, for violating operational terms.
"CB Payments Limited (CBPL) has been fined £3,503,546 by the FCA for repeatedly breaching requirements that prevented the company from offering services to high-risk customers," said the FCA, as reported by News.bitcoin.com on July 26, 2024.
CB Payments Limited, also known as "Coinbase Payments," does not directly handle cryptocurrency transactions for customers but serves as a gateway for trading crypto assets through other Coinbase Group entities.
It was reported that CB Payments Limited is currently not registered for cryptocurrency activities in the UK. In October 2020, CB Payments Limited agreed to voluntary terms with the FCA, prohibiting it from accepting new high-risk clients until compliance issues were resolved.
"Despite the restrictions, CB Payments Limited accepted and/or provided electronic money services to 13,416 high-risk customers," the FCA stated.
The FCA further revealed that about 31% of these customers deposited approximately $24.9 million, which was used for withdrawals and subsequent crypto transactions through other Coinbase Group entities, totaling around $226 million.
The FCA explained that these violations, caused by inadequate controls, went undetected for nearly two years.
Therese Chambers, FCA’s joint executive director, emphasized the severity of financial crime risks in the crypto sector and the need for firms to maintain strong controls.
Bankrupt Crypto Firm Genesis Agrees to $21 Million Settlement
Genesis Global Capital, a bankrupt crypto lending firm, has agreed to pay a $21 million civil penalty to settle allegations from the U.S. Securities and Exchange Commission (SEC).
Genesis was found to have illegally sold securities through a crypto lending program without registering with the SEC. The settlement resolves the SEC's January 2023 claims against Genesis and Gemini over their joint crypto lending program.
This action is part of a series of enforcement measures by the SEC against major players in the crypto sector. Genesis, which filed for bankruptcy in January 2023, is a subsidiary of Digital Currency Group (DCG).
“Genesis operated a lending program that raised billions of dollars in crypto assets from investors,” said the SEC, according to Yahoo Finance on April 22, 2024.
Genesis had frozen customer fund withdrawals in November 2022 following the collapse of the FTX exchange. The SEC’s settlement agreement, detailed on Tuesday, stipulates that no penalties will be enforced until other claims are resolved in bankruptcy court, including those from retail investors.
Lawsuits Between Genesis and Gemini
Genesis and Gemini engaged in mutual lawsuits at the end of 2023. Genesis sued Gemini Trust Co. to recover nearly $690 million, equivalent to approximately Rp 10.8 trillion.
Genesis filed the lawsuit following Gemini's withdrawal from Genesis in the months leading up to the company's Chapter 11 filing in January 2023.
Genesis claimed in a bankruptcy court complaint in New York that the withdrawal by Gemini was unprecedented and caused significant losses detrimental to other crypto lending creditors.
The lawsuit exacerbated the bankruptcy dispute between Genesis and Gemini, which had collaborated on the Gemini Earn program allowing clients to earn around 8% interest on their digital asset holdings.
(*)
Tags: jobs report, coinbase opiniones, how to buy bitcoin on coinbase, coinbase como funciona, buy bitcoin on coinbase, coinbase inc., coinbase wallet tutorial, buy on coinbase, coinbase tutorial, coinbase wallet to bank account, coinbase app tutorial, coinbase wallet uniswap, how to use coinbase wallet, coinbase wallet, coinbase review, coinbase español, coinbase bitcoin, how to use coinbase, coinbase earn money, how to use coinbase app, coinbase, coinbase retirar dinero
