Coinbase welcomes the New York Virtual Markets Integrity Report, which shines a helpful spotlight on important compliance issues in digital asset exchange practices. Unfortunately, some media coverage inaccurately characterized the report’s findings, which are based on information we voluntarily provided in the Virtual Markets Integrity Initiative Questionnaire. We would like to correct the record.

The report states: “Coinbase disclosed that almost twenty percent of executed volume on its platform was attributable to its own trading.”

Coinbase does not trade for the benefit of the company on a proprietary basis. In order to provide an easy-to-use customer experience, Coinbase Consumer quotes a price and then quickly fills the order from our exchange platform (Coinbase Markets). This takes advantage of the liquidity provided by the entire Coinbase ecosystem.

When Coinbase executes these trades, it does so on behalf of Coinbase Consumer customers, not itself.

The volume figure stated in the report has been misreported in the media as “self-trading,” which is inaccurate. The figure represents customer-driven volume via Coinbase Consumer. Coinbase does not operate a proprietary trading desk, nor does it undertake market making actions.

Our goal is to be the world’s most trusted place to buy, store and interact with cryptocurrency. We welcome oversight and will continue to work with regulators to promote the cryptocurrency ecosystem.