Coinbase prepares for its big move with a new asset listing process
One of the biggest cryptocurrency exchanges in the world, Coinbase has decided to move away from its predominantly US-centric approach with a new cryptocurrency listing process. As a result, some new digital assets won’t be available to customers based in the US due to stricter regulations.
The crypto exchange has revamped its policy for listing new cryptocurrencies, replacing an ad hoc process with a more comprehensive and structured one, which the startup expects will expand the range of assets traded on the platform.
Announcement to this effect was made in a Medium blog posted on Tuesday. The blog states:
“Today we’re announcing a new process that will allow us to rapidly list most digital assets that are compliant with the local law, by satisfying listing requests in a jurisdiction-by-jurisdiction manner. In practice, this means some new assets listed on our platform may only be available to customers in select jurisdictions for a period of time.”
This new system allows anyone to submit a digital asset for listing by filling an application form, which will then be evaluated under the company’s digital asset’s framework. Those applicants who fulfil the required criteria may be listed, although not necessarily available right away to all Coinbase customers.
That’s because listings will be added on a jurisdiction-by-jurisdiction basis, rather than supporting all assets globally as Coinbase has done up until now.
The statement further states:
“This new process that will allow us to rapidly list most digital assets that are compliant with the local law, by satisfying listing requests in a jurisdiction-by-jurisdiction manner. In practice, this means some new assets listed on our platform may only be available to customers in select jurisdictions for a period of time.”
Previously, there was no formal mechanism to request a listing, and some organizations would reportedly lobby Coinbase to support their assets.
Planning to expand the range of digital assets
For the record, the San Francisco-based exchange has long been teasing the arrival of a bunch of coins to its platform. Back in March, the company revealed it’s looking to expand its offering with more Ethereum-based (ERC20) tokens.
Referring to the creators of the first two digital currencies the company listed, bitcoin and ethereum, Coinbase CTO Balaji Srinivasan in an interview with CoinDesk said:
“Satoshi and Vitalik [Buterin] were not Coinbase customers. But all future and current asset creators and developers are. So it’s like we’re becoming a two-sided marketplace.”
The exchange is also planning to impose an application fee in the future to defray the legal and operational costs associated with evaluating and listing new assets. But it makes it clear that the exchange may decide to list some assets even in the absence of a formal application.
The post concludes by saying:
“We believe this new listing process allows us to quickly add assets while remaining compliant with local law and continuing to offer our customers the safe, high-quality experience they have come to expect from Coinbase.”
While this new move might sound ground-breaking, it is a bit difficult to implement and it adds another layer of complexity to the already complex world of crypto trading. Meanwhile, reports have confirmed that Coinbase is still looking at ada, lumens, and zcash and these might be rolled out selectively or globally depending on the regulatory constraints.
Coinbase has served more than 20 million customers and supported more than $220 billion in cryptocurrency trades since it was founded in 2012.
Boosted by the hopeful announcement made by the crypto exchange giant, Ripple shed its early week sluggishness and broke out of its recent bearish trend. For most of the day, Ripple traded in the red after witnessing meteoric gains last week. But this all changed after the announcement and at the time of writing Ripple was trading at $0.539, up from an intraday low of $0.436.
Image via Shutterstock
Join our Telegram group