Coinbase retracts on approval of financial instrument type tokens

While Coinbase was to acquire three companies holding various licenses from the Securities and Exchange Commission (SEC) in order to offer its service to crypto-currencies, considered as securities, against all odds, it would have finally denied his announcement.

Coinbase did not receive SEC approval

Coinbase has been given the go-ahead to add financial- grade chips to its platform . The company is said to have acquired three companies, including Keystone Capital Corp.., Venovate Marketplace Inc.and Digital Wealth LLC last month.

She has just made a full U-turn in an email sent to Bloomberg stating she has not received any approval from the US SEC and the FINRA ( Financial Industry Regulatory Authority).

Rachael Horwitz, a spokeswoman for Coinbase said :

"There is no justification for saying that the SEC and FINRA approved Coinbase's purchase of Keystone because the SEC was not involved in the approval process. "

Regulator approval was not required

The cryptocurrency platform wanted to clarify the situation by addressing the media. An informal discussion took place among the main members of the SEC. Moreover, the regulator's participation was useless, explained Horwitz.

"SEC approval is not required for the change of control application. Coinbase discussed certain aspects of its proposed activities, including the acquisition of Keystone, informally with several SEC staff members. "

Coinbase plans to become a registered and regulated broker. Even if the crypto-stock exchange has not received the approval of the SEC, it will go ahead with its own acquisitions.

Many other cryptocurrency companies have also submitted a license application to the US regulatory authorities.

Robinhood, a stock and digital currency trading application, was in talks with regulators for a US banking license in early June. The peer-to-peer payment application Circle has also applied for a banking license to become a brokerage platform.

Do you think that Coinbase is losing the trust of the cryptocurrency community with its multiple contradictory ads? Let us know in the comments section below.