Why German stock exchanges want to delist Coinbase shares

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The only way for Coinbase to start trading, according to Deutsche Boerse, is for the firm to ask for a Legal Entity Identifier code.

The Deutsche Boerse Group has announced that Coinbase’s shares would be delisted from its Xetra internet stock exchange as well as the Frankfurt Stock Exchange.

According to Reuters, Deutsche Boerse said it would delist Coinbase Global from the two exchanges due to “missing reference data” for the shares. The group said someone involved in listing the Coinbase shares used an incorrect Legal Entity Identifier, or LEI, code. The code is a regulatory requirement for any companies participating in financial transactions.

Unless Coinbase or Deutsche Boerse intervene, the stock will be delisted from Xetra and the Frankfurt Stock Exchange at the close of trade on Friday, April 23. The party further stated that the steps would be in effect until further notice.

According to Deutsche Boerse, “the only way for Coinbase to resume trading is for the issuer to apply for an LEI.”

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Coinbase made headlines last week as the company became the first major cryptocurrency exchange to make a direct listing on Nasdaq. In the run-up to the stock’s debut, COIN’s reference price was set at $250, with the price surging to roughly $430 after the shares began trading on April 14. At the time of publication, COIN’s value is $314, having fallen 2% in the last 24 hours.

In recent weeks, many crypto exchange-traded stocks, or ETPs, have been listed on Deutsche Boerse’s electronic trading platform. Last Wednesday, London-based ETC Group unveiled the physical Litecoin exchange-traded cryptocurrency on Xetra, following the platform’s announcement of trading for ETC’s Ether (ETH) ETP and 21Shares’ Ether and Bitcoin Cash (BCH) ETPs.

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