Coinbase Faces Delisting on 2 European Exchanges Over Coding Error

by Ryan

  • Coinbase shares may be delisted from two European exchanges because of a coding error. 
  • “A correct LEI code is a regulatory requirement for admission to trading in Europe,” said trading system Xetra.
  • The situation can be remedied with an application for an LEI, said Xetra. 
  • See more stories on Insider’s business page.

Coinbase shares face delisting this week from two European trading venues run by Deutsche Boerse because of a coding error with the cryptocurrency platform.

The shares could be removed from the Xetra trading system and the Frankfurt Stock Exchange by the end of Friday, each said on their Twitter feeds on Wednesday.

Xetra said traded securities must meet various criteria, including having an LEI, or an individual 20-digit identification code.

“When Coinbase commenced trading, a LEI code was mistakenly used for a Coinbase entity that is not attributable to the entity introduced last week (Coinbase Global Inc.). A correct LEI code is a regulatory requirement for admission to trading in Europe,” wrote Xetra. “The only way for Coinbase to resume trading is for the issuer to apply for an LEI,” it said.

Coinbase became tradable on the Frankfurt stock exchange’s trading floor last Wednesday when the company’s direct listing debuted in the US on Nasdaq. Coinbase is the largest cryptocurrency exchange in the US and its going public has been called a milestone for the industry surrounding digital coins, tokens and blockchain technology.

Nasdaq-traded shares of Coinbase were up nearly 2% during Wednesday’s session. The stock reportedly was rated as a buy at Rosenblatt Securities on Wednesday. 

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