Coinbase close to becoming regulated securities firm

Coinbase has announced it is on the way to becoming a regulated securities firm, waiting for approval on a broker-dealer license, an alternative trading system license and a registered investment advisor license.

Asiff Hirji, CEO of the cryptocurrency exchange, wrote in a company blog post about the process of getting aproval from the US Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) to offer users blockchain securities.

Hirji wrote: “We believe this is an important moment for the crypto ecosystem, and yet another indication of the maturation of the crypto economy. If approved, these licenses will set Coinbase on a path to offer future services that include crypto securities trading, margin and over-the-counter (OTC) trading, and new market data products.”

Coinbase may also work with regulators to tokenize existing securities, “bringing to this space the benefits of cryptocurrency-based markets – like 24/7 trading, real-time settlement, and chain-of-title”.

The firm has made a number of key moves over the last few months, including the aquisition of startup Earn.com, and a deal with Barclays for UK customers.