Coinbase ‘Hacked Together’ a ‘Regulated’ Exchange for ‘An Attractive Headline’

NEW YORK (InsideBitcoins) – The news was punched with a big headline on its blog: ‘Coinbase Launches First Regulated Bitcoin Exchange in the U. S.’ The post went on to explain, ‘If you are a Coinbase user in one of the 24 supported U. S. states or territories you can begin trading immediately on Coinbase Exchange.’
The Wall Street Journal, who broke the story of the exchange’s launch, said ‘Coinbase’s founders have been working for five months and have received regulatory approval in half of U. S. states, including New York and California.’
But New York State Department of Financial Services Superintendent Benjamin Lawsky has since flatly stated that Coinbase has no license to operate in the state. And California issued a consumer alert, saying ‘The California Department of Business Oversight has not decided whether to regulate virtual currency transactions, or the businesses that arrange such transactions, under the state’s Money Transmission Act. California consumers should be aware Coinbase Exchange is not regulated or licensed by the State.’

This post was published at Inside Bitcoins on Jan 29, 2015.