The
Securities and Exchange Commission (SEC) has charged Coinbase, the largest
cryptocurrency exchange in the United States, with operating an illegal trading
platform that offered unregistered crypto asset securities. The securities
watchdog also accused the platform of running a digital asset
staking-as-a-service programme without authorization.
In a
complaint filed before a US district court in New York, SEC
further alleged that Coinbase combines the functions of an exchange, brokerage and
clearing agency–which are separated under US laws–without registering to
engage in these activities.
“All the
while, Coinbase has earned billions of dollars in revenues by, among other
things, collecting transaction fees from investors whom Coinbase has deprived
of the disclosures and protections that registration entails and thus exposed
to significant risk,” SEC explained in its complaint.
The lawsuit
against Coinbase comes a day after the regulator charged Binance, the world’s largest cryptocurrency exchange
by trading volume, before a district court in Columbia for allegedly operating an illegal exchange, offering unregistered crypto
asset securities to investors and commingling customers’ funds. In late March, Coinbase had received a Wells Notice from the regulator, notifying the
Nasdaq-listed crypto exchange that it has been violating the US securities law
by offering unregistered crypto asset securities.
The
Securities and Exchange Commission (SEC) has charged Coinbase, the largest
cryptocurrency exchange in the United States, with operating an illegal trading
platform that offered unregistered crypto asset securities. The securities
watchdog also accused the platform of running a digital asset
staking-as-a-service programme without authorization.
In a
complaint filed before a US district court in New York, SEC
further alleged that Coinbase combines the functions of an exchange, brokerage and
clearing agency–which are separated under US laws–without registering to
engage in these activities.
“All the
while, Coinbase has earned billions of dollars in revenues by, among other
things, collecting transaction fees from investors whom Coinbase has deprived
of the disclosures and protections that registration entails and thus exposed
to significant risk,” SEC explained in its complaint.
The lawsuit
against Coinbase comes a day after the regulator charged Binance, the world’s largest cryptocurrency exchange
by trading volume, before a…
