Coinbase Attempts to Become SEC-Regulated Brokerage Dealer
In an announcement published yesterday, the US’ leading cryptocurrency exchange, Coinbase, revealed that they had acquired 3 SEC regulated securities dealers- Keystone Capital Corp., Venovate Marketplace Inc., and Digital Wealth LLC.
The acquisitions represent a potentially big step forward in Coinbase’s attempts to reach into the greater national market. A tweet from Coinbase yesterday stated, ‘We’re on track to become a US-regulated blockchain securities trading venue. We believe this is an important moment not only for Coinbase, but the entire crypto ecosystem.’
Today we’re excited to announce that we’re on track to become a US-regulated blockchain securities trading venue. We believe this is an important moment not only for Coinbase, but the entire crypto ecosystem. https://t.co/3grNDa6l9Z
— Coinbase (@coinbase) June 6, 2018
Indeed this does bode extremely well for the future of cryptocurrencies and blockchain development. Not only could SEC adoption further legitimize currently existing cryptocurrencies, but it potentially opens the door for companies like Coinbase to ‘work with regulators to tokenize existing types of securities.’
Coinbase president Asiff Hirji has said that, ‘if approved, Coinbase will soon be capable of offering blockchain-based securities, under the oversight of the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). This step forward is being made possible by our acquisition of a broker-dealer license.’
While Coinbase will still need to wait for regulatory approval to operate under their newly acquired licenses, Hirji states that he’s confident in the company’s chances. -‘We take our role in legitimizing the (crypto)space very seriously.’
Upon approval, Coinbase will spend the following months working to reintegrate the platform, after which users might be able to trade not just cryptocurrencies but stocks and other types of securities. This might open the door to a dramatic increase in the volume of cryptocurrency exchanges being made on the open market as crypto securities could become mainstream.
Coinbase also announced this week that it is taking similar steps forward in Japan- currently the largest cryptocurrency market in the world. Coinbase will be applying for a license from Japan’s Financial Service Agency, potentially being the first steps forward for federally approved international cryptocurrency exchange.
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