Coinbase, one of the biggest crypto exchanges and wallet service has received a green light by the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) to list security tokens on their exchange.
Couple of months ago the SEC has issued a statement that all of the crypto exchanges that allow trading of tokens that are securities must register with the regulator and would undergo the same rules and practices as the traditional exchanges. Other business entities that plan on operating as an alternative trading system (ATS) must also adhere to the aforementioned regulatory requirements.
“Registration as a broker-dealer subjects the ATS to a host of regulatory requirements, such as the requirement to have reasonable policies and procedures to prevent the misuse of material non-public information, books and records requirements, and financial responsibilities rules, including as applicable, requirements concerning the safeguarding and custody of customer funds and securities.”
Representative from Coinbase has stated that the SEC and FINRA have given a go to te exchange to acquire Keystone Capital Corp., Venovate Marketplace Inc. And Digital Wealth LLC. These security dealers would enable Coinbase to broaden its offer with security tokens and now work as a broker-dealer, alternative trading system and registered investment adviser.
A week ago the exchange had released an announcement of their plans to list a couple of new coins for trading such as Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC) and 0x (ZRX). They are also putting an effort to establish the technology needed for future support of all of the ERC20 tokens.