Coinbase Moves to Become Regulated Broker Dealer with Strategic Acquisitions

Coinbase Takes a Leap Toward Regulation

In a bold move signaling its intent to navigate the complex waters of regulation, Coinbase has initiated the process to become a fully regulated broker dealer by the US Securities and Exchange Commission (SEC). This shift follows their recent acquisition spree, which includes securities dealer Keystone Capital Corp., Venovate Marketplace, Inc., and Digital Wealth LLC.

New Horizons: Expanding Beyond Crypto

With these acquisitions, it seems Coinbase isn’t just content with leading the cryptocurrency space. The San Francisco-based platform is setting its sights on non-crypto financial products, claiming this could extend its offerings significantly. In their announcement, Coinbase expressed a desire to “work with regulators to tokenize existing types of securities,” a fancy way of saying they want to give more people access to the financial markets. Coinbastion anyone?

A Game-Changer for Securities Trading

Asiff Hirji, Coinbase’s President and COO, made it clear how pivotal this change could be. He noted that if everything goes as planned, Coinbase will be facilitating the trading of blockchain-based securities under strict SEC and FINRA oversight. He said, “If approved, Coinbase will soon be capable of offering blockchain-based securities.” So, if you’ve ever fancied trading stocks like they were crypto, this could be your moment!

Joining the Ranks of Regulated Platforms

This move places Coinbase in the company of other platforms eager to enter the SEC-regulated trading arena. For example, Pennsylvania-based Susquehanna has tweaked its broker-dealer license to trade in cryptocurrencies and Bitcoin futures, and industry insiders are keeping an eye on its future expansions.

The Japanese Connection

But wait, there’s more! Coinbase isn’t just hunkering down in the U.S.; it’s also set its sights on Japan, the land of sushi and sumo wrestling. They’re planning to apply for a trading license with Japan’s Financial Services Agency. Working alongside the Mitsubishi UFJ Financial Group (MUFG), which has generously invested over 1 billion yen into the platform since 2004, Coinbase is laying the groundwork for a robust entry into one of the world’s largest cryptocurrency markets.

Watch Your Back, Coinbase!

However, the competition is fierce—Japan boasts 16 registered exchanges already. Coincheck, the once golden child of crypto exchanges, has reportedly raked in $150 million in quarterly profits. So, Coinbase, put on your game face; it looks like the Japanese market is going to be a tough nut to crack!