Coinbase makes big move towards becoming the first SEC-regulated broker dealer
The crypto currency market`s lack of regulations might change with Coinbase`s first move towards becoming the first SEC-regulated platform. Cryptocurrencies often being painted in a negative light need a push forward to gain the trust required for its market to flourish again but be it in a healthy way. Coinbase the US leading cryptocurrency platform announced on the 6th of June the acquisition of securities trader Keystone Capital Corp. in addition to Venovate Marketplace, Inc. and Digital Wealth LLC. This acquisition makes it possible for Coinbase to start it`s way in becoming the first SEC regulated cryptocurrency trading platform.
Coinbase, a digital currency exchange platform with its headquarters in San-Fransisco, is the leading US trading platform for cryptocurrencies. The platform was founded in 2012, and is the number & recommended way of buying and selling your digital coins. Coinbase, allegedly traded around $150 billion in assets during their existence with more than $20 million customer. The platform is taking a big lead ahead of all the other platforms in becoming the first complete regulated online trader. Coinbase already is one of the most regulated exchanges offering FDIC insurance on fiat deposits and third-party insurance on cryptocurrency deposits.
Coinbase will become both SEC-regulated and under FINRA-regulations (Financial Industry Regulatory Authority). The exchange is in the course of attaining a broker-dealer license, an alternative trading system license, and a registered investment advisor license. Coinbase President and Chief Operating Officer Asiff Hirji stated that:
“If approved, Coinbase will soon be capable of offering blockchain-based securities, under the oversight of the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), this step forward is being made possible by our acquisition of a broker-dealer license.”
Coinbase is well known for its innovating moves in the crypto market. The platform is broadening its operations. A series of announcements have been made over the last period. In March, they announced the creation of an ‘index fund’, one month later the platform launched Coinbase Ventures, an incubator fund for early-stage start-ups working in cryptocurrencies and blockchain. Last week, Coinbase announced the opening of a new office in Japan and they announced the launch of a new set of institutional products to attract institutional investors.
All crypto enthusiasts are hoping that this move will be the step towards a complete regulated market in which digital coins will get the value they deserve.