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.
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