Coinbase Awarded Qualified Crypto Asset Custodian Status
American company Coinbase received permission from New York regulators to open a firm providing custody services in the field of cryptocurrencies.
The New York State Department of Financial Services (NYDFS) on Tuesday said it had approved Coinbase’s application to form the Coinbase Custody Trust Company LLC, and also authorized Coinbase Trust to provide custody services for Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, and XRP..
It is noteworthy that while Coinbase allows its customers to buy, sell and exchange the five above-mentioned cryptocurrencies, the last of them is still not listed on the exchange..
Coinbase COO and President Asiff Khirji welcomed the regulator’s decision, stressing that NYDFS is “a dedicated advocate for the responsible development of the cryptocurrency industry.”.
“The New York State Restricted Trust Companies Regulation, which now allows Coinbase Custody to act as a Qualified Custodian of Crypto Assets, provides unparalleled success for crypto custody services, while still applying the same fiduciary standards and oversight to the company. as well as other established financial institutions operating in New York, “he said.
Earlier, a number of cryptocurrency startups have already managed to enlist the support of regulators to provide custody services, including BitGo, Northern Trust and Prime Trust..
Coinbase is also awaiting regulatory approval for a number of its other products. In June, the company announced that it intends to obtain broker-dealer, alternative trading system, and registered investment advisor licenses through the US Securities and Exchange Commission (SEC) and the Financial Services Regulatory Service (FINRA)..
Hirji previously stated that these licenses would allow the company to legally operate blockchain-based products that could be classified as securities..
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