Representatives from Coinbase cryptocurrency exchanges met with regulators to discuss the possibility of obtaining a banking license. It is reported by the Wall Street Journal, citing an anonymous source close to the case.
According to the newspaper, the meeting took place in the U.S. Office of the controller of monetary circulation (OCC) at the beginning of the year. Representatives of one of the largest companies in the industry has discussed with regulators the possibility of obtaining a national Bank Charter, in the framework of the American banking system means obtaining a license, implying compliance of financial regulation at the national level — in all States.
It is assumed that the presence of a banking license will help broaden the range of services Coinbase and eliminate exchange from having to seek partners among banks.
In addition, the license will significantly change the offer, with whom the exchange refers to large financial institutions to attract them to its platform. Coinbase has already started to introduce various products for institutional investors, including service storage scriptaction, however, many financial institutions prefer to work with companies which have a banking license — so reliable.
According to the Wall Street Journal, regulators have recently talked to the leadership of another cryptocurrency startups — ivyKoin: CEO Gary Feng (Gary Fan) has publicly confirmed meeting with employees of Federal Corporation on insurance of contributions (FDIC).
However, it is clear that the attempt to obtain a banking license means you must meet a long list of regulatory standards that is likely to adversely affect the performance of companies.
“Most of the FINTECH companies come to us because they heard about this concept called the national Bank Charter, giving them the benefits outside of the state. When they come and talk to us, and then realize that in fact requires positioning yourself as a Bank, their eyes somehow fade, and now their gone,” said Joseph Otting (Joseph Otting) from the office of the controller of monetary circulation at the meeting of the parties to industry last month.
It should be noted that Coinbase has appealed to the Commission on securities and exchange Commission (SEC) for obtaining a license for brokerage activity. The exchange is also included in the small list of companies that have received conflicting Regulations necessary for the development of cryptocurrency trading in new York, featuring a high level of regulatory standards.
We will remind, at the same time, representatives of main regulatory agencies, including the SEC and the Commission on commodity futures trading (CFTC), stated that it did not intend to impede the development of the industry.