Coinbase Operations not Licensed in California and New York
9 years ago
29 Jan
Earlier this week Coinbase announced the launch of the first regulated Bitcoin exchange in the US. The company stated in their blog that the Coinbase users based in one of 24 regulated US states could start trading on the Coinbase Exchange without any further delays. Amongst these 24 states, the blog lists both California and New York. Despite of being on the initial list, it has come to light that Coinbase has no proper licenses to operate in these two states.
Department of Business Oversight (DBO) commissioner Jan Lynn Owen claimed they did not investigate Coinbase and they did not conduct any investigations regarding the safety of the exchange for its users. The document explains that although numerous press reports listed California as one of the regulated states, the DBO has not yet decided if they wanted to regulate the virtual currency and, at this time, Coinbase Exchange remains unregulated.
Matthew Anderson, a spokesman for Benjamin M. Lawsky, the superintendent of New York's Department of Financial Services, also stated that Coinbase has no adequate licenses to operate as a Bitcoin exchange in New York.
It is clear that if the Coinbase continues to operate in New York and California, they won’t be doing anything illegal or be in danger of facing any penalties, but it is still unregulated in both states and could lead to bad reputation for the company, especially with all the Bitcoin scandals and thefts in the past.
We are working with several companies, including Coinbase, on licensing and will continue to move forward expeditiously. That said, we have not yet issued any licenses to virtual currency firms. Matthew Anderson, www.nytimes.com;According to New York Times, co-founder of Coinbase, Fred Ehsram, said that his company will continue to work with Mr. Lawsky’s office on all Bitcoin matters including customers, merchants and the recently launched exchange and he is looking forward to the completion of the New York’s BitLicense.
Coinbase is certainly attractive to many customers but the others might feel specially insecure because it is unregulated with all the bitcoin's dramatic past, from thefts to all kinds of scandal, the extra caution is hardly excessive.
For some people, Bitcoin’s appeal lies in the fact that it is unregulated, with no authoritative body overseeing it. But consumer protections will not scare off many Bitcoin users. The people who value their privacy that seriously are in the minority. If you want to capture the larger market, you need to work with the regulators.www.coinreport.net;
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