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>> This step forward is being made possible by our acquisition of a broker-dealer license (B-D), an alternative trading system license (ATS), and a registered i
by anonu 8y ago
>> This step forward is being made possible by our acquisition of a broker-dealer license (B-D), an alternative trading system license (ATS), and a registered investment advisor (RIA) license.
Great sentence in the press release. My thought was that someone (obviously would be Coinbase given their massive amounts of funding) was out looking for a BD. But they went a step further with the ATS and RIA licenses.
Coinbase is, in some sense, "backdooring" their way to becoming regulatory compliant in the US. That's fine - its a way of jump starting the process.
What it ultimately means is:
1. more legitimacy for crypto as they are now regulated by the FINRA and the govt (SEC)
2. If Crypto continues it slow rise - every BD and ATS will get into the game. So expect some realignment in this space.
- dd36 8y agoI wonder what the account requirements are for a BD. Will they have to deny services to foreigners and kids?
- anonu 8y agoI do not believe there is any US regulation that denies brokerage accounts to foreigners or minors. If they do, it may be an independent decision by brokerage firms simple because they don't want to deal with the extra paperwork. Being a BD means a whole ton of paperwork, compliance and regulation. You have to abide by KYC and AML rules (Know Your Client and Anti-Money Laundering). People in charge of accounts need to become registered reps and take 1 of the Series Exams administered by FINRA. I imagine there will be some changes to incorporate crypto into the licensing.