On Wednesday, the crypto exchange platform Coinbase announced it was taking important steps towards its goal: to run as a brokerage house under the regulation of the federal government of the United States.
Asiff Hirji, director of operations and president of Coinbase, published on the company's blog that the company is in the process of obtaining several licenses for this purpose: a broker license, one for an alternative commercial system (ATS) and the registered investment adviser (RIA).
Once obtained, the company will then go for the approval of the Securities and Exchange Commission of the United States (SEC) and the Financial Industry Regulatory Authority (FINRA) to be able to offer blockchain-based values in the platform.
As part of the strategy, Coinbase has acquired three companies that already hold several federal licenses: Venovate Marketplace, Inc., Keystone Capital Corp. and Digital Wealth LLC. Venovate and Keystone are registered with the SEC and FINRA as intermediaries, and Digital Wealth is licensed as an RIA by the SEC. For its part, Venovate is authorized to operate under the ATS classification.
Hirji published :
"We believe that this is an important moment for the cryptographic ecosystem and another indication of the maturation of cryptoeconomics. If approved, these licenses will put Coinbase on a route to offer future services that include the trading of cryptographic securities, OTC and margin businesses, and new market data products. "
Weeks before, Coinbase had announced the acquisition of the decentralized Paradex crypts platform, and its plans to change the brand for its GDAX service to "Coinbase Pro".
In May, the company launched a cryptographic storage service, Coinbase Custody, which is focused on large financial organizations, and includes a suite of products aimed at institutional investors.
In his post, Hirji emphasized the potential of finally including cryptocurrencies in securities firms, adding: "We believe that this will democratize access to capital markets for companies and investors alike, reducing costs for all participants. and contributing transparency and additional inclusion to the ecosystem ".
On the other hand, SEC Chairman Jay Clayton stated that cryptocurrencies designed with the supposed purpose of replacing fiat sovereign currencies, such as Bitcoin, for example, are not yet subject to the securities laws, but that the debate remains open on whether other crypts, such as those distributed through crowdsales, should be subject to them.
The government agency has also said that most of the tokens issued by the ICOs they have analyzed fall into the "value" classification if the federal guidelines are followed.
In statements offered previously, the president of Coinbase said that, due to the regulatory climate in the US, Bitcoin, Ether, Bitcoin Cash and Litecoin were the only assets with which the platform felt comfortable operating. Gaining approval as a broker would significantly increase the list of assets that the company could offer.
Coinbase is not alone in the race to get the federal registry to operate as a regulated exchange. Circle Internet Financial, one of its most capital-backed competitors, also revealed this week its plans to apply to the SEC and obtain a banking license.