After revealing its intention of listing 5 cryptocurrencies on the platform last Friday, Coinbase now has been given the green light to list more coins by U.S watchdogs. This will make Coinbase one of the first federally regulated platforms for trading virtual coins that are deemed as securities.
This comes after the SEC and FIRA approved the firm to purchase three asset management ventures – Venovate Marketplace Inc, Keystone Capital Corp, and Digital Wealth LLC. According to the company’s spokesperson, since these businesses will be under federal oversight, this will allow the exchange to offer tokens deemed as securities.
In June the company said gaining such approval would allow the platform to operate as a registered investment adviser, a deal broker, and an alternative trading system. Alternative trading systems usually operate outside the traditional public stock exchanges.
The SEC has already stated that most crypto coins are securities and therefore issuers must be registered and also they should comply with federal rules just like traditional stock trading platforms. This means regulated exchanges could handle tokens worth billions of dollars that are sold by companies offering ICOs.
The spokesperson goes on to add that the next step for exchange now is integrating its trading technology to the new subsidiaries. This means ensuring employees have the right licenses and reviewing how the platform will report data and specifics on existing customers.
On July 13th, the giant cryptocurrencies exchange said that it was looking into letting users trade 5 new crypto coins – Stellar, Basic Attention, Ox, Cardano, and Zcash. A move that would bring the number of digital coins listed on the exchange to 9 given that the platform already has Bitcoin, Ether, Bitcoin Cash, and Litecoin listed.
Are we set to see more exchanges seek approval from the SEC and FIRA now that Coinbase has been given the green light to list more coins? Share your thoughts in the comment section below.