Coinbase and another unnamed Crypto exchange spoke with the U.S. regulators recently about obtaining banking licences, according to a recent report from The Wall Street Journal. Coinbase is looking to evolve from an exchange and offer banking services.
In early 2018, Coinbase sat down with officials of the U.S. Office of the Comptroller of the Currency(OCC) to discuss the possibility of a banking licence. Meanwhile, Ivy Koin LLC, a Cryptocurrency payments startup met with the officials at Federal Deposit Insurance Corp. for similar discussions as Coinbase.
Just last month, WSJ had also reported that Coinbase was looking to become an SEC-Regulated Brokerage. They had approached regulators about registering as a licensed brokerage firm and electronic-trading venue.
From the looks of it, Coinbase is looking to further legitimise itself and become a registered entity with multiple government agencies.
Comptroller of the Currency Joseph Otting said “Most fintechs come to us because they have heard of this thing called a national banking charter that gives them pre-emption across state lines. When they come and they speak to us, and they understand what it really takes to be a bank, they kind of glaze over and often leave skid marks leaving the building.”
The SEC has also been cautious while dealing with Cryptocurrencies. The regulatory bodies in the US have been welcoming to Cryptocurrencies, at the same time making sure there are no illegal activities surrounding them. The SEC jokingly launched a fake Crypto site yesterday to warn investors from scam ICOs.
Coinbase has also been serious about their expansion plans for a while now. Last week, the company announced multiple products like Coinbase custodial service and Coinbase Prime to help institutional investors get into cryptocurrencies.