Coinbase stops issuing new Bitcoin-backed loans via its Borrowing Service

Cryptocurrency exchange has been suspended Coinbaseannounced the issuance of new loans through the Borrow Service, a product that allowed some customers in the United States to post cryptocurrency as collateral for a cash loan.

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As the exchange said in an email sent to clients Coinbase Borrow on the 3rd of May, which the recipients shared on Twitter, that starting from the 10th of May, customers will not be able to take out new loans using the service. Coinbase Borrow.

The letter added that there would be no impact on outstanding loans, and customers would not need to take any further action.

On the other hand, the stock exchange did not address a public reason for shutting down the service BorrowHowever, a spokesperson for the exchange told Cointelegraph:

“We evaluate our products regularly, to ensure that we prioritize the offerings our customers care about the most.”

It is worth noting that the aforementioned service allowed users to borrow from the exchange for up to 40% of their Bitcoin holdings, up to a limit of $1 million, as it did not require any credit check, while paying 9% annual percentage for the service.

This announcement also comes against the backdrop of an organizational quarrel between Coinbase AndSecurities and Exchange Commission SECwhich sent the exchange a notice in March, the exchange said it related to possible violations of securities laws.

Also read: The “Cocoin” exchange account was hacked on the Twitter platform

And she was Coinbase Earlier this week, it decided to take its stock exchange global, launching a derivatives trading platform Coinbase International Exchange On the second of May.