Coinbase changed the policy listing new assets. Instead of examining each individual candidate on their own initiative, the exchange will use the application system.
After filling in a special form online asset check on compliance with several criteria Coinbase. In case of positive result, the listing will be approved instantly, but the opening bid may be delayed. The latter is due to another change: now Coinbase will update the proposals for countries or regions depending on the current cryptocurrency laws. Before the exchange has opened bids recently added assets on all of its markets. Thus, some assets will not be available in the countries where cryptocurrency is either illegal, or have uncertain status.
Before making any changes to the policy Coinbase cryptocurrency startups could affect the placement of their token on the stock exchange only through lobbying. CoinDesk writes, the decision Coinbase is a kind of gesture of good will towards the developers, because even a potential listing on this site guarantees a lot of publicity.
“Thus, we try to establish contact with the developers,” said technical Director Coinbase Balaji Srinivasan (Balaji Srinivasan). He stressed that the market situation has changed due to a change in the position of programmers:
“Satoshi and acne [Buterin] were not customers of Coinbase. But all those who are engaged and will be engaged in ideological and programmatic development of a token — is another case. We become like the bilateral market.”
For filing after the approval of the listing, the developers will have to make a special contribution. Srivasta did not specify the amount but assured that they will not be onerous and is primarily intended to screen out spammers and cover the costs of the audit of the applicant company.
He also said that, in addition to the legislative aspect, the main selection criterion for Coinbase is the demand for the asset:
“We want to be sure that there will be demand. Therefore, we ask three main questions: a) “whether the project complies with the requirements of the law?” b) “is whether an asset innovative and safe from a technical point of view?”, C) “if he needs our customers?””.
An unusual approach
Variation listings under the law — an extremely rare cryptocurrency exchanges approach. However, according to a partner at the law firm Anderson Kill Stephen Palli (Stephen Palley), is the most correct.
“Actually, I’ve been promoting this method. If Ford, Apple or Google want to sell something worldwide, then they first of all put everything in line with international law,” he said, adding that companies of this order usually adapt its operational activities to the laws of specific countries.
However, Palli added that despite the advantage of full legality of the business is “a huge hassle and costs a lot of money.”
To comply with the requirements of the financial supervision authorities of each country will also be difficult. Despite the fact that many cryptocurrency exchanges have similar experience (selective customer service in various States in the US), complete blocking of access to certain areas will cost Coinbase a lot of time and resources.
Even in the United States, the closure of access does not always work. Reflecting on the impact of such efforts, Justin Steffen (Steffen, Justin), partner Jenner & Block LLP, part of the trials, referred to a recently published report of the attorney General of the state of new York:
“Blocking by geolocation can save cryptocurrency company from accidental under article of certain rules and regulations, but this may not be enough. For example, a recent report by the attorney General of the state of new York indicated that the majority of exchanges do not provide protection against the use of VPN”.
In turn, sreenivasan argues that Coinbase “will do everything necessary to comply with local laws. You may need to request identifying information as a replacement or complement to the IP-check”.
It is not clear what the consequences will be a change for traders. For example, lose the customer access to previously purchased assets when moving to another US state or another country? Another controversial point relates to the comfort of users, using VPN as a measure of confidentiality or during travel to countries with limited Internet access.
In addition, Srinivasan refused to disclose the selection criteria themselves are auditors of the applicant company within Coinbase and how the exchange intends to deal with insider trading. The stock exchange are often accused of the latter, especially in connection with bids BCH and LTC; in the second case — due to the fact that the maker of Litecoin Charlie Lee (Charlie Lee) previously worked at Coinbase.
Now the press and the public also expect how users react to the news about Coinbase fees charged to developers for application and listing. Commission on the exchanges remain a hot topic, because of the high prices, many cryptosuite believe that trading venues are selected according to ability to pay.