Coinbase seeks SEC license for brokerage

April 10, 2018
96 Views


Cryptocurrency trading platform Coinbase has applied to the U.S. Securities and Exchange Commission (SEC) for a license to offer brokerage and electronic trading services, according to reports.

Last week, the Wall Street Journal reported that the San Francisco-based firm have met with regulators in recent weeks as it begins the process of applying for the required licenses.

Crucially, the licensing would enable Coinbase to list a number of other tokens, including those previously ruled by the SEC to be securities, and could open up a raft of new token and cryptocurrency markets on the Coinbase platform.

Valued at over $1.6 billion, Coinbase is the leading platform for buying cryptocurrencies like SegWit-Coin BTC (also known as Bitcoin Legacy or Core) and Bitcoin Cash. If the license is to be granted, and Coinbase predictably follows through on listing an array of new tokens and cryptocurrencies, it could be the trigger for other platforms to follow suit.

As far as cryptocurrencies are concerned, the SEC has remained vague on what is and isn’t to be classed as a security. As guidance, the agency recommends following the Howey test, derived from a Supreme Court ruling in 1946, which provides that (1) there is an investment of money, (2) an anticipated profit from the investment, (3) that the investment is in a common enterprise, and (4) that the profits are derived from the efforts of a third party.

The definition matters, because platforms like Coinbase run the risk of falling foul of securities laws, unless they are licensed and regulated to engage in securities brokerage.

On the license being granted, Coinbase will only be permitted to list tokens that have been registered with the SEC by their issuers, which means investors will have access to full financial disclosures, unless they are limited to institutional investors only.

Coinbase President Asiff Hirji said removing the uncertainty in the current regulatory structures would allow Coinbase, and by extension other platforms, to offer a broader range of assets.

“As soon as there is more regulatory clarity than there currently is you would expect us to start listing more assets,” Hirji told CNBC.

As the Coinbase application unfolds, it is expected that other exchanges will likely follow suit to remain competitive across potential new, regulated token markets.

Note: Tokens in the SegWit chain are referred to as SegWit-Coin BTC (inaccurately called Bitcoin Legacy or Core by many) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.



Source link

You may be interested

The Bitmex Trap – Why #Bitcoin Really Went Up!
Video
10 views
Video
10 views

The Bitmex Trap – Why #Bitcoin Really Went Up!

Editor - September 25, 2018

How to Profit From Any Market Condition: https://learn.bitraged.com/courses/trading The real reason Bitcoin pumped $400 in 15 minutes. While most of…

Why Litecoin (LTC) Listing on Gemini Exchange is a Big Deal for LTC
Litecoin News
11 views
Litecoin News
11 views

Why Litecoin (LTC) Listing on Gemini Exchange is a Big Deal for LTC

Editor - September 25, 2018

[ad_1] Why Litecoin (LTC) Listing on Gemini Exchange is a Big Deal for LTC  CryptoRecorderThe $65 Level Remains a Strong Hurdle…

JPMorgan widens blockchain payments to more than 75 banks
Blockchain News
9 views
Blockchain News
9 views

JPMorgan widens blockchain payments to more than 75 banks

Editor - September 25, 2018

[ad_1] JPMorgan widens blockchain payments to more than 75 banks  Financial TimesFull coverage [ad_2] Source link

Leave a Comment

Your email address will not be published.