The largest US cryptocurrency exchange, Coinbase, has received regulatory approval to acquire three securities companies, Bloomberg has reported.
The US crypto exchange announced last month that it was acquiring Keystone Capital Corp, Venovate Marketplace Inc, and Digital Wealth LLC in a bid to become a regulated broker-dealer. A company spokesman told Bloomberg on Monday that the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) had approved the acquisitions. This will allow the firm to offer trading of cryptocoins deemed to be securities. This also provides Coinbase with licences to operate as alternative trading system and a registered investment adviser, the company indicated in its June announcement.
According to the spokesman, Coinbase will now start integrating its technology in the into the new subsidiaries.
With this move, Coinbase aims to secure a leading position in a market that is seeing growing regulatory scrutiny. This will allow the company to support tokens issued though initial coin offerings (ICOs). The SEC has determined that most of these coins are securities, which means issuers must register and comply with federal laws - as do platforms that handle trading.
Coinbase is already making moves to expand its portfolio of crypto offerings, which currently consists of Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash. Last month the company announced that it had commenced the process of adding Ethereum Classic (ETC). The company made another announcement on Friday, saying that it was looking into potentially adding Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC) and 0x (ZRX) to its platform. However, the company said that “[u]nlike the ongoing process of adding Ethereum Classic, which is technically very similar to Ethereum, these assets will require additional exploratory work and we cannot guarantee they will be listed for trading”.