Media: Coinbase Intends to become a Regulated Cryptocurrency Broker

By

The American Cryptocurrency Exchange, Coinbase, has applied to the US Securities and Exchange Commission (SEC) to obtain a license to conduct brokerage activities and work as an electronic trading platform. This is reported by Bitsonline with reference to the WSJ.

As the newspaper notes, obtaining the status of a licensed broker will allow the company to expand the list of tradable assets, including those that the SEC classifies as securities (for example, tokens issued in the course of primary offers of coins).

According to the chief operating officer and president of Coinbase, Asiffa Hirji, the company seeks to expand the list of supported digital assets in the long term, but regulatory and legal uncertainty continue to serve as a significant impediment to this.

“As soon as there is more regulatory clarity than now, we will start listing new assets,” he added.

Apparently, Coinbase is preparing a favorable ground for the previously announced implementation of support for the Ethereum-standard ERC-20.

During the announcement of ERC-20 support from Coinbase it was indicated that GDAX will only add Ethereum tokens. Following last year’s program of the GDAX Digital Asset Framework, we can assume that Coinbase will have at its disposal future lists of altcoins.

Getting a broker’s license will allow the company to reach a new level and also better comply with the US regulatory framework which will reduce legal risks. In addition, obtaining the status of a licensed brokerage will allow the exchange to transfer assets that the SEC considers as securities.

Earlier this week Coinbase stated that they would soon provide users with the opportunity to withdraw coins formed as a result of forks within the bitcoin network.

Leave a Comment

Your email address will not be published.

You may also like

Hot News