4 ms·

What's the risk of coinbase being shut down?

• jedunnigan 13y ago
  That depends on a lot of things. They are currently licensed up on the federal and state level, so they have that much covered: http://www.fincen.gov/financial_institutions/msb/msbstateselector.html http://www.fincen.gov/financial_institutions/msb/msbstatesel... If they defrauded their customers, were subject to a serious heist or were blatantly ignoring the four pillars of a good compliance program they will be shut down. None of those are things we can easily predict however.
  • thinkcomp 13y ago
    False. Coinbase does not have any state licenses. It hasn't even applied in California. http://www.dbo.ca.gov/Licensees/money_transmitters/money_transmitters_directory.asp http://www.dbo.ca.gov/Licensees/money_transmitters/money_tra... http://www.dbo.ca.gov/Publications/summaries/default.asp http://www.dbo.ca.gov/Publications/summaries/default.asp
    • jedunnigan 13y ago
      Ah yes, my mistake. I had assumed that was the case but I read too far into my FinCEN link.
  • gamblor956 13y ago
    Coinbase is only licensed as a money transmitter at the federal level. In order to legally provide money transmission services in any state, it must also acquire a license in that state. (Under international and federal legal conventions, digital services performed by software are treated as rendered in the customer's location, so Coinbase would need a money transmitter license in each state in which it wants to do business.)
    • thinkcomp 13y ago
      Coinbase is not licensed anywhere. It is registered as a Money Services Business with FinCEN, which is a signal that its officers, directors and investors are aware that state licenses are required by law for the business they are in. That's different than having a license, however. In the United States, there's no such thing as a federal money transmission license unfortunately.