Don’t sleep on crypto
The cryptocurrency exchange company Coinbase reported on Wednesday that it has bought three companies that will allow it to soon become a fully-regulated company.
In one deal, its parent company Key Acquisition purchased financial tech firms Keystone Capital, Venovate Marketplace, and Digital Wealth. The acquisition of these companies gives Coinbase “a broker-dealer license, an alternative trading system license, and a registered investment advisor license,” according to Business Insider.
These licenses will likely help Coinbase add more types of coins to its arsenal. Currently, Coinbase only trades bitcoin, bitcoin cash, ethereum, and litecoin. In contrast, competitors like Binance trades over 200 kinds of coins.
President and chief operating officer Assif Hirji reported his future plans for the cryptocurrency firm, stating in the same report,
If approved, these licenses will set Coinbase on a path to offer future services that include crypto securities trading, margin and over-the-counter (OTC) trading, and new market data products.
These licenses will allow the firm to register with the government, which will spread its consumer market further, as more people will trust the cryptocurrency. They also put Coinbase in a good position with the SEC – with more licenses, they will face less growing pains when the Commission rolls out the new regulations.
No cryptocurrency is regulated by the SEC as of now, but firms have been waiting for rules from the SEC for months now. The acquisition of these companies puts Coinbase in a great position, ahead of all other cryptocurrency companies which lack these licenses.
Bitcoin skyrocketed months ago and has been dipping ever since, but Coinbase’s acquisition of these companies shows that the crypto industry is far from dead.
Featured image via Pixabay/MichaelWuensch