Coinbase Gets Regulatory Approval to List Coins Deemed Securities
Leading cryptocurrency exchange and wallet service provider Coinbase has received approval from the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) to list digital coins considered to be securities, Bloomberg reported Monday, July 16.
According to a Coinbase representative, the SEC and FINRA have authorized the company to acquire security dealers Keystone Capital Corp., Venovate Marketplace Inc., and Digital Wealth LLC. Initially, the San Francisco-based company announced the acquisition plans on June 6.
The acquisitions enable the firm to operate as a broker dealer, an alternative trading system, and a registered investment adviser, offering so-called security tokens and also placing the businesses under federal oversight.
The next step for Coinbase is integrating its technology into the new subsidiaries, the spokesman said, without providing a timeline. That means making sure employees have the proper licenses and reviewing how the company reports data and onboards customers.
Last week, Coinbase announced that it is exploring the addition of five new coins to its trading lists, including Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC), and 0x (ZRX).
The company noted that it does not guarantee the new tokens will be listed for trading. If it does add the assets, the move would signal a turning point for Coinbase, which currently only lets customers trade Bitcoin, Bitcoin Cash, Ether and Litecoin.
In a separate interview with CNBC on Monday Coinbase Vice President and General Manager Adam White said there is increased interest among institutional investors in the cryptocurrency space.
“What’s so unique about cryptocurrencies, and in many ways this asset class, [is that it] was driven by retail investors — not institutions,” White said.
Speaking of possible addition of new coins, the company’s VP said “the idea of adding new assets is very simply: our customers want it.”
“We have a long-term vision for the space,” White said. “And we are focused on building the exchange, the wallet, the custodian, that allows capital to move into the space.”
Earlier in June, Coinbase announced that it is now starting the engineering work to integrate Ethereum Classic with its services. A further date for formally launching the trading of ETC on Coinbase will be announced on Sept. 5, the company said.
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