Crypto exchange giant Coinbase just got the green light for offering custody services for a few crypto assets.
A Coinbase application has been approved for Coinbase Global, Inc. to act as a regulated trust company.
Coinbase “had its application approved for its wholly-owned subsidiary, Coinbase Global, Inc., to operate as a limited purpose trust company,” says a report by Finance Magnates.
Coinbase offers custody services in NY
The approval allows Coinbase to hold crypto for customers, in line with regulation even in New York.
We say “even” in NY because NY has been known to crack down on crypto regulation possible beginning with its BitLicense requirement a few years ago.
BitLicense laws require persons or entities to obtain a license for the following:
- Virtual currency transmission
- Storing, holding, or maintaining custody or control of virtual currency on behalf of others
- Buying and selling virtual currency as a customer business
- Performing exchange services as a customer business
- Controlling, administering, or issuing a virtual currency
Regulators from NY even went for Kraken exchange which left NY ago to find a friendlier home in California.
Coinbase is an approved custodian for more coins
Coinbase is an approved custodian for Bitcoin, Ethereum, Ethereum Classic, Bitcoin Cash, Litecoin, and surprisingly Ripple (XRP), even though XRP is not yet available for trade on Coinbase.
In the same press release as the crypto custody announcement, Superintendent Maria T. Vullo states: “New York continues to be a leader in creating, fostering, and responsibly regulating a financial services marketplace that promotes innovation, safeguards the industry and protects consumers through strong supervision.”
“We applaud the leadership Superintendent Vullo has shown to guide the responsible growth of the cryptocurrency ecosystem and look forward to working with their offices in the future,” said Coinbase President and COO Asiff Hiriji in the government press release.
***Notice: #IDEX will begin blocking new orders from users with New York State IP addresses on Thursday, October 25th (6pm UTC). Cancels and withdrawals will remain active.
— Katana Perps (@katanaperps) October 24, 2018
Even if NY gave Coinbase the green light to offer crypto custody services, the state still has plans to ban its residents from using IDEX decentralized exchange, says Aurora IDEX exchange.
