Coinbase Exchange Approaches SEC for Regulated License

Coinbase Exchange Approaches SEC for Regulated License

The U.S. cryptocurrency exchange Coinbase has approached regulators to get registered as a licensed brokerage. The action will help the exchange to conduct its business in compliance with the Securities and Exchange Commission (SEC).

The regulated exchange would be able to provide several cryptocurrencies for trading purposes, including the coins that are considered as “securities” by the SEC.

There is no clear definition by the SEC on which particular digital currencies are to be considered as “securities.” Investors were advised by the regulatory body and businesses in the space to refer to the “Howey Test,” till the general regulations are set. The Howey test was created in 1946. It works toward determining whether an unconventional financial vehicle requires the same regulation as familiar investments like stocks and bonds.

Regulation A Must For Coinbase Expansion Plans

Coinbase said in a recent report, that it wants to firmly make itself as the Google of cryptocurrencies. It has eye on expanding its exchange beyond the four coins currently listed- bitcoin, bitcoin cash, ethereum, and litecoin.

Case in point, only stringent regulations, and required licenses would enable Coinbase to reach anywhere near Google’s dominance. There’s no realistic way in which an unregulated, unlicensed business becomes one of the top in the world.

The company recently announced its plans of launching ERC20-compliant Ethereum tokens across its trading and asset management platforms. Coinbase added they would wait until clear regulations arrive from the SEC.

Most Cryptocurrencies To Come Under Security

The cryptocurrency population thinks that digital asset will come under the purview securities. Blockchain startups and token issuers are now working on creating their own security coins, and introduced new technical aspects of the concerned token. The believe that the regulation could potentially equate to increasing issues from buyers and sellers.

Meanwhile, governments and authorities around the world are scratching their heads and clamping down on cryptocurrency projects and blockchain startups who have their own tokens.

The BTC Manager recently reported on the state of world government about regulation of blockchain technology. Besides, with ICO exit-scams and rampant frauds the world will prove itself why a decentralized system would always need regulations to work.

Leave a Reply

Your email address will not be published.