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> Coins left on Coinbase would become collateral for the company in bankruptcy proceedings Sounds so weird to me. I get they're not a bank, but if a storage pl
by charles_f 4y ago
> Coins left on Coinbase would become collateral for the company in bankruptcy proceedings
Sounds so weird to me. I get they're not a bank, but if a storage place was about to be broke, I doubt whatever is still stored in there on behalf of customers would serve as collateral.
- nybble41 4y agoThe difference is that a storage facility is holding property which belongs to its customers, while Coinbase merely owes its customers a service—there is no property involved, as the assets are all virtual. Banks are somewhere in between; they owe their depositors property (cash) upon request, not merely a service, but unlike a storage facility until that withdrawal is made the money belongs to the bank (more-or-less like a loan). They are also subject to regulations specific to banks which place those withdrawal claims in a special category.