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That is if there are funds, no? I’m surprised they can do this. Is it because US laws are more lax or vague on crypto?
by mathattack 8y ago
That is if there are funds, no? I’m surprised they can do this. Is it because US laws are more lax or vague on crypto?
- elliekelly 8y agoYou're correct, that's all assuming they don't "accidentally" spend customer funds on corporate expenses which is obviously fairly easy to do when all of the funds are in the same account. I'm honestly a bit surprised this hasn't come up with regulators yet. Even under current U.S. law I'm not sure how Coinbase can take custody of client funds without being either an OCC chartered bank or an SEC (or NFA) registered broker. Coinbase is absolutely functioning as a bank and there's a pretty strong argument they're operating as a forex broker. Banks and broker-dealers have strict rules around segregation of client funds and securities for the exact purpose of protecting customers' ability to promptly access their funds/assets in the event the custodian goes under.