Coinbase Receives Regulatory Approval to List Security Coins


Coinbase receives regulatory approval to list cryptocurrencies that are deemed to be securities. According to online reports, Coinbase has stated that FINRA and SEC have empowered the exchange to acquire security dealers Keystone Capital Corp., Venovate Marketplace Inc., and Digital Wealth LLC. 

17 July, AtoZ Markets – One of the most popular cryptocurrency exchange and wallet service providers based in the US, Coinbase, has received a confirmation from the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) to list cryptocurrencies considered to be securities. 

Coinbase Receives Regulatory Approval to List Security Coins

According to online media reports from the US, the representative from Coinbase has stated that FINRA and SEC have empowered the exchange to acquire security dealers Keystone Capital Corp., Venovate Marketplace Inc., and Digital Wealth LLC. 

The move will allow Coinbase to extend its offerings with security tokens. The exchange will be able to operate as a broker-dealer, a registered investment adviser, and an alternative trading system. The acquisition plans have been initially announced earlier this June. 

The spokesman has reportedly stated that Coinbase plans to integrate its technology into the new subsidiaries. However, no timeline details were provided. The exchange will also need to verify that employees possess the necessary licenses and review how the firm reports information.

US Cryptocurrency Exchange Regulations

Earlier last week, the exchange has also announced that it looks into the possibility of adding five new coins to its trading lists. These include Cardano, Stellar Lumens, Zcash, Basic Attention Token, and 0x. Coinbase has further stated that it does not guarantee the new tokens will be available for trading. 

Moreover, in June, the San Francisco based exchange has stated that it will support Ethereum Classic (ETC) and ERC20 tokens. The company has highlighted that its decision to add the latter “paves the way for supporting ERC20 assets across Coinbase products in the future.”

As per the latest development, the SEC has stated that firms planning to operate as an alternative trading system ATS) will need to abide by regulatory requirements:

 “Registration as a broker-dealer subjects the ATS to a host of regulatory requirements, such as the requirement to have reasonable policies and procedures to prevent the misuse of material non-public information, books and records requirements, and financial responsibility rules, including, as applicable, requirements concerning the safeguarding and custody of customer funds and securities.”

Back in March, the US SEC has stated that platforms that trade digital assets that are considered securities will have to register with the regulator as an exchange. They would be then governed by the same rules as traditional exchanges.

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