The exchange saw a 12% decrease in its transactions during the fourth quarter of 2022, but the company managed to exceed expectations for its earnings even with a 57% plunge in annual revenue.


Coinbase, a U.S.-based cryptocurrency exchange, surpassed anticipated revenue for the fourth quarter of 2022, yet still witnessed a decrease in its transaction volume.


The exchange made $605 million in revenues during the quarter, surpassing the $589 million predicted by Wall Street sources.


The total revenue of Coinbase grew 5% for the quarter despite the 12% decrease in transaction volumes from the prior quarter. Coinbase attributed the growth to a 34% boost in its subscription and service revenues.


Coinbase stands by its insistence that its staking offerings are not securities; however, the earnings from staking were still lower than the last quarter, as the dip in cryptocurrency values was greater than the increase in staked holdings of various cryptocurrencies.


The Securities and Exchange Commission (SEC) is currently conducting an investigation into the staking products of the exchange, similar to the investigation concluded with Kraken which resulted in the crypto exchange agreeing to a payment of $30 million.


Coinbase remarked that 2022 had been a tough year for crypto world. The company pointed out that macroeconomic circumstances, as well as bankruptcies of crypto-focused hedge fund Three Arrows Capital, Voyager, and Celsius exchanges, caused difficulties for the crypto sector.


The firm indicated their anticipation for increased crypto regulation in the coming year both in the U.S. and other nations. They gave mention to the completion of MiCA in the EU, as well as Brazil, the U.K., and India having established clear policies for crypto. The company declared their disapproval of the "disjointed approach" of the U.S. in regards to crypto oversight and affirmed that they are pushing for a more consistent policy.



Other News from Today