Coinbase has become the first cryptocurrency exchange to list regulated tokens as securities among the assets listed on its platform, with approval of the Securities and Exchange Commission of the United States (SEC). Coinbase did not receive this authorization directly, but through the purchase of subsidiary companies that were previously licensed.
According to Bloomberg Coinbase received the approval of the SEC and the Financial Industry Regulatory Authority (FINRA) to acquire three companies licensed in different financial areas, obtaining consequently a stock broker license (BD), investment adviser registered (RIA) and alternative trading system (ATS) . A corporate movement that gives the California-based exchange house the possibility of operating with "blockchain-based values", as had the company planned from June this year.
The companies acquired by Coinbase are Keystone Capital Corp, a financial services firm registered with FINRA; Venovate Marketplace Inc., a brokerage company that operates since 2009; and Digital Wealth LLC, an investment advisory firm in the technology sector. The purchase of these three companies had been mentioned by the exchange house between their plans weeks ago, this as a fundamental part of its objective to include new digital assets on its platform.
, Coinbase spokesman said that the next steps of the company after this approval is "integrate technology to subsidiary companies", it is necessary to adjust the operation of the company to work according to legal provisions. An adaptation for which the company did not provide more detail, so it remains unknown when the supply of new products is planned .
In recent weeks Coinbase has announced different edges of its plans for this 2018. In fact, the past July 13 announced ] that are exploring the incorporation of Stellar Lumens (XML), Zcash (ZEC), 0x (ZRX), Cardano (ADA) and Basic Attention Token (BAT). This information led to increases between 10 and 28% in the price of these altcoins, while the rest of the market remained static.
It is important to note that Coinbase ] did not assure that these cryptocurrencies would be included among those already available -Bitcoin, ether, litecoin and bitcoin cash-, since, according to the company itself, it is not decided whether the five altcoins are securities in all the countries in which Coinbase works. The conclusion in this regard by spokesperson was that they probably adopt some types of transactions with these cryptocurrencies, but with geographical limitations for legal reasons.
Coinbase is not the only
Coinbase's corporate move to become a digital change house that operates under SEC regulations is not exclusive to this company. Circle Internet Financial Ltd., one of the competition companies of Coinbase, announced last month that it is also working on its brokerage license with the Stock Exchange to allow to its users to buy and sell tokens qualified as securities.
It is important to keep in mind that this regulation has caused controversies in the ecosystem. The former director of the Commission on Trade in Futures on Goods of the United States, Gary Gensler, assured in an interview last April that XRP (Ripple) and Ether would be qualified as values. The reason for this allegation is supported by the fact that both cryptoactives were issued based on an Initial Coin Offer (ICO); being therefore "shares" of a company and, consequently, Ethereum Foundation and Ripple Labs companies that issued and negotiated financial securities, in violation of US legal regulations.
However, the Securities and Exchange Commission has not ruled on the matter for the moment, and no US exchange house has eliminated the ether, the second cryptocurrency of the ecosystem, from its lists. On the other hand, XRP has not been eliminated from the list of exchanges of the main exchange houses of the country.
This type of movement among the companies that make life in the ecosystem makes public the intention of two of the largest foreign exchange houses in the United States: to join the regulatory standards for take advantage of new opportunities in the ecosystem.