Home / Crypto Currency / Coinbase Says It Now Has Regulatory Approval to List Security Tokens

Coinbase Says It Now Has Regulatory Approval to List Security Tokens

U.S. cryptocurrency exchange Coinbase has reportedly received regulatory approval to acquire several securities firms – a move that could eventually see it supporting trading in tokens deemed as securities.

A spokesperson for the exchange said on Monday that both the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) have approved recently revealed acquisition deals for currently regulated firms, according to a report from Bloomberg.

Last month, the exchange announced that it intends to purchase three companies – Keystone Capital Corp., Venovate Marketplace and Digital Wealth LLC – as a means to becoming a regulated platform for offering trading in security tokens, as well as to tokenize traditional financial assets.

As reported by CoinDesk, Coinbase's chief operating officer and president Asiff Hirji indicated that, through the acquisitions, the exchange is seeking licenses as a broker-dealer, an alternative trading system and a registered investment adviser.

The move by the noted U.S. crypto exchange comes at a time when financial watchdogs in the U.S. are beefing up scrutiny over cryptocurrency projects, especially initial coin offerings (ICOs), and would seem to be positioning the firm for a future when current legal gray areas have been clarified in new regulation.

The SEC has said it is currently investigating dozens of token projects, and its chairman Jay Clayton recently said in a public hearing that he believe every ICO he's seen is a security.

Coinbase general manager Dan Romero told CoinDesk in a previous interview that the exchange wants to add new digital assets commonly requested by customers, but it must tread carefully while U.S. regulators deliberate on how they might treat certain uses of the tech.

He said at the time:

"When we get to a point that we know which digital currencies and assets are securities, which ones are commodities, money or currency, it would be immensely helpful."

Just days ago, though, Coinbase announced it is exploring the potential listing of five additional cryptocurrencies on its platform, news that quickly resulted in soaring prices for the assets.

Coinbase currently offers trading of bitcoin, bitcoin cash, ethereum and litecoin, and has said it will soon add support for ethereum classic.

Green light image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Read more

Check Also

Bitcoin Price Watch: BTC/USD Buyers Losing Grip Below $6,500?

Key Points Bitcoin price is still struggling to clear the key $6,520 resistance zone against the US Dollar. There is an important bullish trend line in place with support at $6,430 on the hourly chart of the BTC/USD pair (data feed from Kraken). The price is currently at a risk of a bearish reaction towards the $6,400 or $6,340 support levels. Bitcoin price is slowly moving into a bearish zone below $6,480 against the US Dollar. BTC/USD could extend the current dip towards $6,340 if buyers lose control. Bitcoin Price Analysis There was an increase in selling pressure noted below the $6,500 and $6,480 levels in bitcoin price against the US Dollar. The BTC/USD pair struggled continuously to break the $6,500 and $6,520 resistance levels. As a result, there was a slight bearish reaction and the price declined below the $6,450 level. It seems like the price failed to settle above the 23.6% Fib retracement level of the previous decline from the $6,828 high to $6,350 swing low. More importantly, there is a contracting range forming with support at $6,430 and resistance near $6,490. Additionally, there is a crucial bullish trend line in place with support at $6,430 on the hourly chart of the BTC/USD pair. Therefore, if the price breaks the trend line support and $6,410, it could drop towards the $6,380 level and the 100 hourly simple moving average. Below the 100 hourly SMA, the next key support is at $6,280 (the previous resistance). On the flip side, a break above the $6,500 and $6,520 resistance levels could push the price towards $6,590. Looking at the chart, bitcoin price may continue to trade in a tight range before it either climbs above $6,500 or breaks the $6,430 support in the near term. Looking at the technical indicators: Hourly MACD – The MACD for BTC/USD is gaining momentum in the bearish zone. Hourly RSI (Relative Strength Index) – The RSI has moved below the 30 level. Major Support Level – $6,400 Major Resistance Level – $6,500 The post Bitcoin Price Watch: BTC/USD Buyers Losing Grip Below $6,500? appeared first on NewsBTC.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.