Coinbase plans to become a licensed broker

According to the Wall Street Journal, one of the world's largest cryptocurrency exchanges, Coinbase, has filed an application with the US Securities and Exchange Commission (SEC) to register as a licensed brokerage firm. This will allow the exchange to provide services related to those types of cryptocurrencies that the SEC classifies as securities. In addition, it could serve as an incentive for the exchange's competitors to also register with the SEC and submit to government oversight.

Coinbase Exchange President Asif Hirji said that increased regulation will allow the exchange to allow more coins to be listed, given that the company only deals with coins that are regulated. “We allow assets to be listed that have some regulatory certainty,” Hirji told CNBC. “The more assets that are regulated, the more assets we will allow for trading.”

Bitcoin and similar types of cryptocurrencies are not specifically regulated in the United States, but the increase in ICOs has prompted the SEC to take a closer look at them, since most tokens offered through ICOs are securities and can only be traded on licensed exchanges, according to SEC Chairman Jay Clayton.

This has made Coinbase wary of listing new types. currencies By becoming a licensed brokerage, Coinbase will be able to trade security tokens and comply with the law.

However, there are some disadvantages to such registration. 

The SEC has broad oversight powers over brokerage firms, ensuring their compliance with various regulations. If Coinbase is registered as a broker, the SEC will review its trading records, cybersecurity systems and policies to prevent market manipulation and insider trading.

However, Coinbase is already under government scrutiny due to a lawsuit over non-payment taxes by clients of the Coinbase exchange, so this site has little choice.

We would like to remind you that in mid-March, the UK Financial Conduct Authority (FCA) gave Coinbase a license to carry out transactions with electronic money.

According to https://www.digitaltrends.com