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BTC exchanges aren't regulated in the same way as stock exchanges. Coinbase isn't a BD AFAICT, so they don't have the same type of fiduciary responsibilities.
by sheetjs 13y ago
BTC exchanges aren't regulated in the same way as stock exchanges. Coinbase isn't a BD AFAICT, so they don't have the same type of fiduciary responsibilities. They also aren't registered as a bank or as a NY private bank, so they aren't subject to FDIC or other banking regulations.
They are much closer to ebay than to IB
- richardlblair 13y agoIn the recent senate hearing around Bitcoin everyone agreed that the current laws can and do apply to Bitcoin. Some modification is needed, but not much. At the end of the day, it's up to the judge.
- fleitz 13y agoIf you get it in front of a judge miraculous things can happen, if a judge finds as a matter of fact that they are an exchange than suddenly their more like IB than eBay. By guaranteeing a price they are acting as a counterparty to the transaction. That's the whole point of this, CoinBase doesn't want to be like IB so they should refund the customer his money rather than acting like a fraudulent IB. There are plenty of more serious operations like http://bitcoincapitalpartners.com http://bitcoincapitalpartners.com that take client money seriously.