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The Problem with Fidelity’s Crypto Trading Platform

October 16, 2018

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Coinbase Becoming a Broker Dealer

 

What does it mean for a Crypto exchange company to become fully regulated and able to sell and trade fiat biased products, as well? Coinbase has already been the first mover in terms of being a Crypto exchange and wallet service and actually succeeding in doing so, over the long term.

 

Now, the news has just broken that they’ve acquired the companies, Keystone Capital Corporation, Venovate Marketplace, and Digital Wealth, which apparently enables them to file to be treated the same as a traditional stock broker and dealer.

 

Over the long term, this signifies that Coinbase is making a real effort to spread the Blockchain, as well as, of course, Cryptocurrencies, to the traditional financial market in a way that it should accept. In the short term, this appears to mean that they’re looking to be the first mover of another kind, in terms of being taken seriously and treated fairly by regulators.

 

It is clear that the possibility exists of Coinbase being the first domino to drop in terms of Crypto actually becoming widely accepted. If they’re also able to add ERC20 tokens and they do so en-mass, but critically, it could mean that the serious Crypto projects are able to quickly follow suit and fall under some sort of regulatory framework.

 

For Coinbase, in the very short -term, this also includes being able to list Crypto projects that are officially SEC regulated, though, as mentioned in our previous pieces, it is not quite clear at this time, what these are.

 

What is clear is that traditional financial firms are slowly moving in the opposite direction, towards being able to offer what are also called “Blockchain-based securities,” under the watchful eye of the government. Inside of this group, an original report by Cointelegraph mentions Susquehanna, which is a well-known broker-dealer firm, out of Pennsylvania.

 

In terms of businesses that have already been active in the Blockchain industry, Coinbase isn’t alone. Most of you who are even slightly acquainted with the space know a bit about what the Circle group has been doing. Now, besides being able to sell the top Cryptocurrencies, Circle is also looking to become a brokerage and trading house that’s officially SEC regulated, so that it can trade all types of token projects without worrying.

 

These movements come on the heels of Coinbase announcing its move into Japan, for which it also plans to become regulated. In addition to this, the major motivation for Coinbase, Circle and other well-known Crypto dealers to play ball is simply, as Circle puts it, to only speak to and deal with one regulator.

 

As all of this continues forward, it will likely be a make or break moment for the industry and as of now, all signs appear to be pointing towards some sort of positive outcome once the process is finished.

 

         

 

By: BGN Editorial Staff

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