Coinbase Delisting Sidetracked as German Stock Exchange Begins Trading

The leading U.S.-based exchange, Coinbase, is now experiencing danger of being delisted on Friday by the Deutsche Börse because of the issues with adequate reference codes. Friday could determine to be a significant day in the history of Coinbase as it was revealed that the Deutsche Börse is preparing to delist shares from its Xetra and Frankfurt systems. Besides, the shares of the crypto platform are down 2.1% to $313.63 as of early Wednesday. Overall, shares are down 20% from last week’s price of $381.00 at the opening. Coinbase stock made its much-awaited Nasdaq debut a week ago, the most influential yet of any crypto firm.

Moreover, unless Coinbase or Deutsche Börse takes the decision, the stock will no longer be available on the Xetra or the Frankfurt Stock Exchange starting at the end of trading on April 23. The group continued the measures would proceed until further notification. Notwithstanding this hiccup, Deutsche Börse extends its dedication to expanding the range of cryptocurrencies accessible for trading. Deutsche Börse became the first global exchange to trade centrally cleared cryptos. It involves Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. The recent product offering involves over 200 ENTs and approximately 1,700 EFTs as of April 20. 

Coinbase Faces Issues Due to the Legal Entity Identifier

An LEI (Legal Entity Identifier) is a 20 character, alpha-numeric code needed for stocks to be traded. The LEI relates to essential reference info, allowing clear identification of all legal entities associated with any provided transaction. The code is a regulatory obligation for any companies engaging in financial transactions. Coinbase did give this code when their venture into the Deutsche Börse started. Regrettably, it was later discovered that the code offered was not appropriately linked to the listed entity. 

Moreover, Xetra’s Twitter account tweeted about the issue. The Twitter thread elucidates that the only method for Coinbase to begin regular trading at any conventional venue in Germany is to apply for an adequate LEI. As per the LEI website, this process can be concluded in an hour of Submission in Germany. At this time, it is unclear if the clerical problem was on the front of Coinbase or Deutsche Börse.

Deutsche Börse’s e-trading platform has been accountable for listing various crypto exchange-traded products or ETPs in current weeks. Last Wednesday, London-based ETC Group introduced its physical Litecoin exchanged-traded crypto on Xetra, after the platform commencing trading for ETC’s Ether (ETH) exchange-traded commodity product and 21Shares’ Ether and Bitcoin Cash (BCH) ETPs.

https://www.industrynewsengine.com/