The famous cryptocurrency exchange and platform, Coinbase, has been speaking with U.S. regulators about the possibility to obtain a federal banking charter. The information has been reported by The Wall Street Journal (WSJ) on May the 18th.
Coinbase Wants to Acquire Federal Banking License
Coinbase is working side by side with top U.S. regulators so as to acquire a federal banking charter. Citing a ‘person familiar with the matter,’ Coinbase representatives spoke the the U.S. Office of the Comptroller of the Currency – also known as OCC – at the beginning of this year. The main intention is to obtain a bank charter that would let them be a regulated exchange to the eyes of the U.S. regulatory agencies.
A spokesperson fro Coinbase did not comment on the meeting with the offices, but added that the company is ‘committed to working closely’ with different regulators so as to ensure that Coinbase is a properly licensed company for the products and services offered.
These are important news for virtual currency users and investors, that may be searching for more regulated exchanges. This would allow cryptocurrencies to have more legitimacy and Coinbase to be a regulated exchange.
Other experts believe that Coinbase is going against the main idea of virtual currencies, which is being far away form governments and traditional financial institutions like banks.
Some time ago, we have written at UseTheBitcoin that Coinbase has formally announced its new platform specially designed for institutional investors. The new service is known as Coinbase Custody and would facilitate investments in cryptocurrencies for wealthier investors and institutions.
Coinbase uploaded a blog post that reads as follows:
“We have leveraged our experience safely storing more than $20 billion of cryptocurrency to create Coinbase Custody, the most secure crypto storage solution available. In partnership with a SEC-regulated broker-dealer, Coinbase Custody is proud to offer a service that couples Coinbase’s cryptocurrency security excellence with third-party auditing and financial reporting validation that operates at the high standard of an SEC-regulated, custodial broker-dealer.”
Coinbase is one of the most important virtual currency platforms in the market and it offers its clients the possibility to buy, sell and hold Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).