A leading American bitcoin exchange Coinbase has officially announced plans to become the world’s first cryptocurrency broker-dealer with the offering of the securities on the blockchain, which will carry out activities in accordance with the requirements of the securities and exchange Commission (SEC).
President and managing Director Coinbase Asif, Hirji (Asiff Hirji) said:
«Today we are pleased to announce that become a regulated United States trading platform for blockchain-backed securities. We believe that this is an important moment not only for Coinbase, but for the entire crypto ecosystem».
Published in the company blog announcement says Coinbase is in the process of obtaining permission to operate as a fully regulated brokerage company. This will be possible after the exchange will receive a license for broker-dealers, alternative trading systems (ATS) and registered investment Advisor (RIA).
One of the stages of achieving this goal was the acquisition of the companies Coinbase Keystone Capital Corp, Venovate Marketplace and Digital Wealth.
What does it all mean?
If Coinbase will be able to obtain a license, it will greatly expand the list of provided her services and in fact will make the company the first brokerage firm that is regulated by the SEC and FINRA (the Agency for regulation of activities of financial institutions).
After receiving permission, she will be able to offer cryptocurrency trading the securities margin trading and off-exchange trading (OTC), as well as new market products. Given the fact that the market has a lot of digital assets, and a sufficiently large number of them meets the requirements of the definition of «securities» in the long term it may contribute to market expansion. In the words of Girja it sounds like:
«In the end, we will be able to see the world in which we will cooperate with regulators for tokenization of the existing types of securities, making this space the benefits of cryptocurrency markets such as hour trading, seven days a week and calculations in real time.»
Recall, shortly before that, Coinbase has added a set of tools for institutional investors. In addition, the exchange is in talks about obtaining a banking license.