Binance US Delists Over 40 Pairs Post Lawsuit; Will Coinbase Follow?

In late 2019, Binance US received widespread criticism for delisting over 40 trading pairs from its platform. This followed the filing of a class-action lawsuit against the platform by a group of investors who claimed that Binance US had engaged in market manipulation, insider trading, and other fraudulent practices. Despite denying the allegations, Binance US chose to delist the controversial pairs, which included a number of lesser-known cryptocurrencies.

The decision to delist the pairs was met with mixed reactions from the crypto community. Some praised the move as a necessary step to protect investors and ensure transparency, while others argued that it was an overreaction that only served to harm the industry as a whole. While the exact reasons for the delisting were never fully clear, it was widely believed that Binance US was trying to distance itself from the legal issues that it was facing.

The question that many in the industry are now asking is whether Coinbase, one of the largest cryptocurrency exchanges in the world, will take a similar step in the wake of the Binance US case. With numerous class-action lawsuits pending against Coinbase, including one alleging insider trading during the Bitcoin Cash listing, some analysts believe that the exchange may choose to delist controversial trading pairs in order to avoid further legal trouble.

There are several factors that could influence Coinbase’s decision on this matter. Firstly, the exchange’s reputation is at stake. As one of the most reputable and trusted platforms in the industry, Coinbase has a lot to lose if it is found to have engaged in unethical or fraudulent practices. Secondly, Coinbase is heavily regulated by various financial authorities around the world, including the SEC and the Financial Conduct Authority in the UK. Any legal action against the exchange would likely result in increased scrutiny from these regulatory bodies, which could have serious consequences for Coinbase’s operations.

Additionally, Coinbase has a responsibility to its customers. With over 56 million users worldwide, the platform must maintain a high level of transparency and integrity in order to retain their trust. If Coinbase were to continue offering trading pairs that were known to be involved in legal disputes or other controversies, it could put its customers at risk and damage its reputation even further.

One potential argument against Coinbase delisting any trading pairs is the idea of free market principles. The cryptocurrency industry has historically been built on the foundations of innovation, decentralization, and the ability for anyone to participate. Trading pairs represent a key aspect of this freedom, allowing crypto enthusiasts to invest in new projects and experiment with different strategies. By delisting trading pairs, Coinbase could be seen as limiting this freedom and stifling innovation in the industry.

However, others argue that delisting specific pairs is not the same as limiting the overall freedom of the market. Coinbase could still offer a wide range of trading pairs, but simply choose to exclude those that are involved in ongoing legal disputes or other controversies. This would not only protect their customers but also send a message to the wider industry that unethical behavior will not be tolerated.

Ultimately, it is unclear whether Coinbase will follow in Binance US’s footsteps and delist trading pairs in the wake of the ongoing legal action against the platform. While the company has remained relatively quiet on the matter, there are signs that it is taking the issue seriously. In a recent blog post, Coinbase stated its commitment to transparency and emphasized the importance of “building trust in the crypto community.” Whether this will translate into action on the trading pairs issue remains to be seen.

In conclusion, the delisting of over 40 trading pairs by Binance US after the legal action against it raises important questions about the role of exchanges in protecting their customers and maintaining transparency in the industry. With Coinbase facing its own legal challenges, the question of whether it will take a similar step is a valid one. While there are arguments for and against delisting specific pairs, it is clear that the industry as a whole must work to maintain high standards of integrity and ethics if it is to continue to grow and thrive. Whether Coinbase ultimately decides to delist controversial trading pairs or not, the issue highlights the importance of transparency, honesty, and trust in the world of cryptocurrencies.