Coinbase Talks Compliance, Prepares to Pitch a Regulatory Framework to the Officials
After yielding to the US Securities and Exchange Commission (SEC) and dropping its plans to launch an interest-earning product called Coinbase Lend, the biggest cryptocurrency exchange in the US is back on Twitter talking about compliance.
Late on Tuesday, Coinbase said that over the coming months, it plans to give the public a look “under the hood” at its programs and technologies used to keep customers safe and bad actors off the platforms.
“At Coinbase, we think about compliance a little differently.”
It will also be publishing a series of research papers exploring some of the biggest challenges faced by the compliance teams.
In its latest report, Coinbase found that while there is a lot of speculation about the use of crypto in terrorist-funded activities, according to blockchain analytics, it makes up less than 0.05% of all illicit activity.
The same day came the reports that Coinbase is also preparing to pitch a proposed regulatory framework to federal officials.
The proposal is expected to be rolled out in the coming days. While details are not yet available, it will be covering what should be and shouldn’t be defined as a security within the US.
Earlier this month, the exchange revealed it received a Wells Notice for the launch of its “Lend” product. At the time, the exchange said, the SEC cited the Howey and Reves cases to argue that the product appears to violate securities laws.