No Need For New Crypto Regulation, Coinbase Says

Coinbase's Chief Lawyer considers that the federal government has all the necessary powers and mechanisms to regulate the crypto-currency industry
15 March 2018   1210

At a hearing in the US Congress, the chief lawyer of the American company Coinbase, Mike Lempres, said that the federal government has all the necessary powers and mechanisms to regulate the crypto-currency industry, and there is no need to create a new department. This is reported by Forbes.

Nevertheless, Lempres noted that the authorities should determine what powers each supervisory authority has over the industry, since Coinbase already reports to the Securities and Exchange Commission (SEC), and to the Commodity Futures Trading Commission (CFTC) and before the Federal Trade Commission, and before the Federal Trade Commission and the Financial Crimes Enforcement Network (FinCEN). In addition, the company also must comply with the requirements of licensing authorities in 38 states.

Each regulator, according to Lempres, must choose a specific direction in the crypto-currency sphere and take it under control.

Today’s environment calls to mind the parable of the blind mice and the elephant - each agency looks at tokens from its own narrow perspective:

  • the SEC says these assets, particularly ICO’s, are probably securities;
  • the CFTC says tokens are commodities, unless they are securities;
  • the IRS says they are property;
  • FinCEN says tokens are money; and
  •  other agencies see tokens through their own lens.

Mike Lempres

Chief Lawyer, Coinbase

Lempres also explained why only Bitcoin, Litecoin, Ethereum and Bitcoin Cash are traded on GDAX. The reason is that these digital assets are not exactly securities, for which Coinbase does not have a licence. The list of available crypto-currencies is limited, since there is a risk that the Khovi test can assign the status of securities to other tokens.

Congressman from the Democratic Party of California Brad Sherman in response to the demands of a representative of Coinbase said that crypto-currencies can not be securities or goods, because it is fraud.

Coinbase to Acquire Neutrino

Startup will help the exchange to determine the most popular tokens in certain regions for listing on the respective branches of the site
19 February 2019   73

Coinbase cryptocurrency exchange bought analytical blockchain-startup Neutrino. The amount of the transaction was not disclosed, CoinDesk reports.

According to Coinbase product director Varun Srinivasan, the startup will help the exchange to determine the most popular tokens in certain regions for listing on the respective branches of the site.

It is noted that eight employees of Neutrino will be transferred to Coinbase’s London office this week.

We decided to join Coinbase because we’re totally aligned with the company’s mission of building an open financial system and we share the same commitment to regulation, compliance and security in the cryptocurrency space. 
 

Giancarlo Russo

CEO, Neutrino

Earlier in February, the Coinbase venture unit financed a startup Dharma Labs, developing a decentralized lending platform for cryptocurrency traders and investors.