In the latest daily cryptocurrency news, we have the exchange giant Coinbase with another pioneering move in the regulatory field of crypto. The company announced that its institutional wing, the Coinbase Custody Trust Company recently received approval from the New York State regulators in order to operate as an “Independent Qualified Custodian.”
The news struck the crypto world mainly because the title of qualified custodian will allow Coinbase to operate similarly as a bank, so much that it will sometimes be referred as a “custodian bank” and would be authorized to hold money for other people.
The sole purpose of a custodian will be minimizing theft and loss of funds. With this, Coinbase becomes one of the first cryptocurrency firms to achieve the status of a qualified custodian, along with BitGo which recently received approval from the South Dakota Division of Banking to operate under the same status.
Meanwhile, the Coinbase Custody Trust Company is a separate company from Coinbase – which means that the funds and accounts of the company will be organized in a separate way from the existing capital and the funds held by Coinbase.
Even though this move does not directly affect the regular users and traders using the Coinbase products, it will definitely add more options and products in the coming months. Right now, it remains to be seen if Coinbase will seek approval from other jurisdictions such as the European Union for similar licenses.
South Africa Doesn’t Intend On Banning Crypto Trading
Crypto Exchanges In Bulgaria Are Investigated: Government Asks For 10% On Profits
Accounts Of The First Digital Bank In India Closed After Involving In Crypto-Related Activity
“I've been a user of DBS' Digibank for a year. Although I regularly used Kotak Mahindra Bank for my cryptocurrency transactions, I used Digibank only 7 times throughout the year. On January 14th, I received multiple messages from my twitter [sic] followers regarding an account closure notice by Digibank. I checked my mailbox and found the mail myself.”However, Digibank stated:
“Reserve Bank of India through their public notices have warned/advised the public regarding risks associated with virtual currencies. We reiterated the same vide our emails dated 4th May 2018 and 2nd Aug 2019, cautioning our account holders [against] the risks associated [...] and that DBS accounts and debit cards should not be used for their purchase or any kind of dealings.”Many other users responded to the allegations that not only Digibank but many other banks are doing the same as well.
BitMex Pulls The Plug On Trading Accounts In Quebec And The US
‘’The development comes at the same time as the Hong Kong-based company notifying users in North Korea, Iran, Syria, Cuba, Sudan and Sevastopol in the Crimea since the fourth quarter of 2018 against holding positions or trading on BitMEX, as these are restricted jurisdictions.’’It seems like BitMex only wants to cover its back and provide protection for their users against regulatory crackdowns. However, the exchange decided to pull the plug on the trading accounts after the Canadian regulatory body has announced the BitMex is operating illegally in Canada:
‘’BitMEX is not registered with the AMF and is therefore not authorized to have activities in the province of Quebec. We informed this company that its activities were illegal.’’There is still no explanation why the exchange decided to shut down the trading accounts in the US. Many believe that the exchange does so because of the same strict crypto regulations. We are still expecting a comment from BitMex since it seems like there is almost a billion dollars worth of crypto still on the platform.
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