USA’s largest cryptocurrency stock market coinbasepeoples bitcoin has decided to suspend new loans offered through Coinbase Borrow, its service that allows it to borrow money in return.
Coinbase said in a statement. BTC He stated that the loan service provided in return will end as of May 10.
Coinbase added in its statement that the suspension decision will not have any impact on previously used loans that are still being paid.
Speaking to Bloomberg, a Coinbase spokesperson said:
“From May 10, 2023, customers will no longer be able to obtain new loans with Coinbase Borrow.
However, it has no impact on your outstanding loans and no action is required at this time. You will still have access to your credit history and the full Borrow dashboard.
We regularly evaluate our products to make sure we prioritize the offerings our customers care about most.”
Credit service Coinbase Borrow provides loans of up to $1 million against Bitcoin collateral in select US states only.
According to the conditions set by Coinbase, customers bitcoin They could borrow up to 40% of its value at an annual interest rate of 8.7%.
Brian Armstrong, CEO of CoinbaseCoinbase described the Borrow service as a service developed to expand the cryptocurrency economy.
Coinbase made this decision amid ongoing regulatory pressure. For SEC He accused Coinbase of violating securities law and sent a Wells Notice to the exchange.
*Not investment advice.
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