BREAKING: CFTC New Guidelines Drive Coinbase to Suspend Margin Trading

The leading cryptocurrency exchange in the United States, Coinbase, has made public the plan to close all margin trading services starting Wednesday.

As of 1400 Pacific Standard Time (PST), no new margin trading orders will be allowed on Coinbase Pro, according to Paul Grewal, the firm's chief legal officer.

The suspension of new orders takes effect on Wednesday, while the full service will go offline in December to allow for the ongoing trades to expire.

Coinbase said that it plans to work hand in hand with regulators such as the Commodity Futures Trading Commission (CFTC) because regulation is crucial for the cryptocurrency industry's growth.

In March, the CFTC revised its guidelines regarding "actual delivery" of crypto assets that gives the customer legal right over the digital assets.

According to the regulator, assets bought through margin trading are not supposed to be liquidated.

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