The US-based leading cryptocurrency exchange Coinbase has issued a statement refuting “inaccurate” media reports that the platform engages in proprietary trading. The exchange said that some media coverage has inaccurately characterized the results of the New York Virtual Markets Integrity Report, to which Coinbase had voluntarily contributed information about its practices by participating in a Virtual Markets Integrity Initiative Questionnaire.

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

To which, Coinbase clarified that when it executes these trades, it does so on behalf of Coinbase Consumer customers, not itself.

"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."

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

Coinbase received the Bitlicense from the New York Department of Financial Services (NYDFS) in January 2017, which authorizes its continuing virtual currency business operations in the state of New York. In a previous statement, Coinbase had outlined that its participation in the NY Virtual Markets Integrity report and the questionnaire was intended to shed light on a range of steps the exchange has been undertaking to address matters of compliance with federal and state regulators, which include measures to address cybersecurity, market integrity, and platform reliability.

The exchange is looking to expand its legal, compliance and government affairs capabilities as it hired Brian Brooks as a new Chief Legal Officer last week. Brooks most recently served as Executive Vice President (EVP), General Counsel and Corporate Secretary of the U.S. Federal National Mortgage Association (FNMA), commonly known as Fannie Mae.  Mike Lempres who previously led legal function at Coinbase will now focus on scaling the company’s government affairs program, which includes Coinbase as a founding member of the Blockchain Association and managing the Coinbase Political Action Committee.

Coinbase CEO Brian Armstrong is bullish on cryptocurrency markets even as they are going through turbulence in recent times. Armstrong expects over a billion people to become a part of the crypto ecosystem over the next five years.