Coinbase Gets Regulatory Nod for Trading of Securities

Jul 17, 2018 at 23:01

San Francisco-based crypto exchange, Coinbase Inc. expressed that it already got the approval of regulators with several acquisitions that will allow it to become one of the first federally regulated platform for trading digital coins deemed to be securities.

The United States Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority allowed the company’s takeover of Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC. The said move will allow Coinbase to offer security tokens aside from putting the business under federal watch.

Likewise, it will grant the company with licenses to operate as a broker dealer, an alternative trading system and a registered investment adviser.

Coinbase already identified that it is considering to allow users to trade five new cryptocurrencies including Cardano, Basic Attention Token, Stellar, Zcash and Ox but did not commit whether it will list them in the exchange.

At present, the crypto exchange only lets customers trade Bitcoin, Bitcoin Cash, Ether and Litecoin.

Earlier, Circle Internet Financial Ltd., also mentioned about its plans to pursue registration as a brokerage and trading venue with the SEC to help investors buy and sell tokens deemed to be securities aside from a plan to acquire federal banking license.