Coinbase Acquires Financial Services Firm to Become SEC-Regulated Broker Dealer

Leading US cryptocurrency trading platform Coinbase initiated the process to become a fully regulated broker dealer by the US Securities and Exchange Commission.

According to an announcement published June 6, this is made possible by the acquisition of securities dealer Keystone Capital Corp. in addition to Venovate Marketplace, Inc., and Digital Wealth LLC.The acquisition could help the San Francisco-based exchange extend its offerings and subsequently expand into non-crypto financial products.

"If approved, Coinbase will soon be capable of offering blockchain-based securities, under the oversight of the US Securities and Exchange Commission and the Financial Industry Regulatory Authority. This step forward is being made possible by our acquisition of a broker-dealer license."

Today we're excited to announce that we're on track to become a US-regulated blockchain securities trading venue.

With this move, Coinbase joins other platforms that are looking to trade blockchain-based securities under the regulatory purview of the SEC. Pennsylvania-Based Susquehanna recently amended their broker dealer license to trade cryptocurrencies and Bitcoin futures.

Peer-to-peer payments platform Circle Internet Financial Ltd., is seeking a banking license and registration as brokerage and trading venue with the SEC. This would allow the platform to sell tokens that are considered securities.

Earlier this week, Coinbase revealed plans to move into the Japanese crypto market, and that it intends to apply for a license with the country's financial regulator, the Financial Services Agency.

Coinbase is said to be working with Mitsubishi UFJ Financial Group on its expansion into Japan.

MUFG has invested over 1 bln yen in Coinbase since 2004 through Mitsubishi UFJ Bank and Mitsubishi UFJ Capital.

While Japan is the world's largest market for cryptocurrencies, with 3.5 mln crypto traders, Coinbase could face stiff competition.