News

Coinbase Future-Proofing Itself: Talks With SEC To Register As Exchange

The wallet and exchange giant Coinbase is reportedly in conversations with the Security Exchanges Commission to register as a full security brokerage exchange, according to an article written by The Wall Street Journal yesterday. This happens right after Coinbase has agreed to list Ethereum based ERC20 tokens. With this, Coinbase seeks to protect itself from possible regulatory changes that would stop cryptocurrency trading for a year, in the worst case scenario.
ERC20 tokens are used like utility tokens for almost every ICO out there. So this will open more markets for Coinbase. But it will also put a lot of responsibility on the exchange and the tokens that it will list due to the new security onslaught of the SEC against ICOs.
Coinbase relationship with government authorities has been thorny at best. Remember the long battle of the exchange provider with the Internal Revenue Service (IRS), the US tax watchdog, that finally ended with Coinbase delivering the private operational info of their top traders to them.
Cryptocurrency regulation in the US is in a state of disarray and uncertainty right now, due to reports that the SEC would consider some cryptocurrencies as securities this same year, changing the landscape of the trading business in the country and forcing exchanges to comply with a lengthy registry process. And even then after registering, they would have to wait a period of time to operate, according to present regulations. Some insiders state that the SEC master plan would be to declare all cryptocurrencies as securities. That’s why Coinbase is making this move, just in case that this hypothetical worst case comes to happen.
Clear regulation must be passed in order to exchanges to know what to really do for complying with the regulatory framework, and to create a climate of trust in the sector. This could well be the year of crypto regulation and massification, at least in the USA.

Related posts
cryptocurrencyDOGEdogecoinDOGEUSDElon MuskNewsTron NewsTRXUSD

As Elon Musk’s SpaceX Literally Sends Dogecoin To The Moon, Justin Sun Craves For Tron to Tag Along

Justin Sun, the CEO of Tron is offering Elon Musk a million-dollar deal, to help launch a satellite for BitTorrent and Tron. The CEO of the leading network has been clamoring for the adoption of the Tron network and its…
BitcoinBitcoin NewsbtcusdBTCUSDCBTCUSDTFacebookMark ZuckerbergNewsxbtusd

Facebook’s Mark Zuckerberg Might Have Just Made A Grand Entrance Into The Bitcoin Market

The CEO of Facebook might have just dropped subtle hints on his “Bitcoin holdings.” In a post that has left the cryptocurrency space confused, for the most part, Zuckerberg posted a picture of two of his goats, named Max and…
BitcoinBitcoin NewsbtcusdBTCUSDCBTCUSDTNewsxbtusd

Software Giant Palantir Joins the Bitcoin Race, Hints At Gigantic BTC Buy

What do Tesla, Time magazine and WeWork have in common? All companies have, in the last three months, announced either a significant investment in cryptocurrency or a newfound acceptance of it as a means of payment from customers. The most…