Visa and Worldpay Take Blame for Erroneous Charges on Coinbase

A recent report from the Wall Street Journal revealed that two of the largest payment processors, Visa and Worldpay, were responsible for erroneously charging customers on Coinbase.

Visa and Worldpay have taken blame for erroneous charges on Coinbase. The problem has been present for a while, and it seems to be getting worse. Read more in detail here: is coinbase free.

A growing number of Wall Street giants, from Goldman Sachs to the New York Stock Exchange, have shown interest in extending their footprints in the burgeoning cryptocurrency world in different ways in recent weeks.

While many market watchers think that the entrance of major Wall Street banks and exchange operators is beneficial to the alt-coin sector, other experts believe that banks seeking to extend their position in the crypto area will face challenges.

In a recent report, Fitch Ratings said, “Centrally cleared cryptocurrency derivatives may be a real-world test of clearinghouses’ margining and default processes, especially if derivative notional volumes rise and cryptocurrencies show more price volatility.”

Bitcoin futures, which launched in December on the Cboe and CME, are the only crypto-related products presently accessible in the United States. Nasdaq is also thinking about introducing bitcoin futures at some time in the future.

Other Problems

Digital assets are being embraced by some of Wall Street’s biggest names. For example, Goldman Sachs just hired its first cryptocurrency employee and said that it intends to trade bitcoin futures for customers using its own funds. Fitch, on the other hand, sees difficulties for banks seeking to enter the digital currency derivatives market.

According to the ratings agency, “a significant rise in financial institutions’ exposure to bitcoin derivatives may test clearinghouses and major financial institution clearing members in ways that are not usually associated with the launch of new market products.” “Cryptocurrencies are prone to high price volatility, which is compounded by a young, uncontrolled underlying market with little price history and no widely recognized basic valuation standards. These variables make margin calculations more difficult, especially for short trades where losses cannot be limited.”

Bitcoin futures, which are cash settled, continue to have little volume compared to other well-known futures products.

“As of May 9, 2018, open positions in XBT and BTC were small, with 6,287 and 2,479 contracts, respectively, valued at $59 million and $116 million. Cryptocurrency derivative volumes may increase if difficulties connected with trading the cryptocurrency, such as uncertainties about regulatory, tax, and legal frameworks, are resolved, according to Fitch.

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