Coinbase Seeks to Become a Regulated Brokerage Company

Coinbase Seeks to Become a Regulated Brokerage Company

Altcoins CoinBase
April 11, 2018 by Bitzamp
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Coinbase Seeks to Become a Regulated Brokerage Company Coinbase, one of the world’s biggest cryptocurrency exchanges seeks to register with SEC as a licensed brokerage and digital trading in a bid for commercial expansion. Considering how many people believe that cryptocurrency is a crime facilitator, it’s easy to see why cryptocurrency trading would be craving
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Coinbase Seeks to Become a Regulated Brokerage Company
Coinbase, one of the world’s biggest cryptocurrency exchanges seeks to register with SEC as a licensed brokerage and digital trading in a bid for commercial expansion.

Considering how many people believe that cryptocurrency is a crime facilitator, it’s easy to see why cryptocurrency trading would be craving a little legitimacy to try and advance the market. With this in mind, it is easy to see why Coinbase took a step back in that direction by applying for registration with the Securities and Exchange Commission (SEC) as a licensed brokerage firm.

Although it is believed that SEC is about to formulate guidelines for exchanges and other crypto-related businesses, Coinbase is not ready to play hide and seek game with regulators. As a result, he came out into the open and made his intentions known to the watchdog before he got into trouble.

A spokesperson for Coinbase declined to comment on the matter. Although Asif Hirji, president of Coinbase, said in an interview on Thursday that, when his company received more clarity from the regulatory agencies on their positions in digital currencies, his company will be more prompt to provide information.

Such a move would likely prompt other exchanges to do likewise especially if the SEC actually approves Coinbase as a brokerage firm. However, such a move would also cost Coinbase and those who join in, as the SEC would then have the ability to examine records, policies and the like to protect against market manipulation and insider trading.

If the SEC signs off on Coinbase’s registration, it will be a precedent for certain legal issues in some crypto trading assets as securities. Several industry insiders said that a brokerage license would also allow the six-year-old cryptocurrency exchange to support more digital coins while complying with SEC regulations.


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