On June 6, the United States Securities and Exchange Commission (SEC) charged Coinbase for operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency. It also charged Coinbase with failing to register the offer and sale of its crypto asset staking-as-a-service program. Why it matters: According to the SEC, by not registering itself with the regulator, Coinbase has deprived its customer base of significant protections, including inspection by the SEC, recordkeeping requirements, and safeguards against conflicts of interest, among others. The SEC seems to be tightening its regulatory control over crypto exchanges. The case against Coinbase comes only a day after the SEC sued Binance for allegedly misleading its customers. The SEC had a very similar complaint against Binance as well, saying that it should have registered itself as an exchange, broker-dealer and clearing agency. It is important to point out here that according to the SEC, Binance and Coinbase have been performing these functions (that of an exchange, broker-dealer, etc.) since 2017 and 2019, respectively. This leaves one wondering if regulatory action was to take place, why was it not done earlier? SEC’s complaints against Coinbase: The SEC says that since 2019, Coinbase has made billions of dollars unlawfully facilitating the buying and selling of crypto asset securities. It further mentions that Coinbase failed to register its offers and sales of this staking program, which it says deprives customers of critical disclosures and other protections. It alleges that “Coinbase was fully aware of the applicability of…
- ONDC September Round-Up: AI, grievance redressal, financial services, Google, exports, and more September 30, 2023
- ‘The Liver Doctor’ X account suspended following defamation case by Himalaya Wellness Corporation September 29, 2023
- Bombay HC to Pronounce Judgment on Fact Check Amendment on December 1st, Stay on Notification to Continue Until Then September 29, 2023
- Here’s how web publishers can opt out of Google crawlers scraping website data to train AI models September 29, 2023
- Parliament Standing Committee Calls For A Monitoring Group To Check Technological Readiness For Digital Education Projects September 29, 2023
MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.
Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...
Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...
RBI Deputy Governor Rabi Shankar called for self-regulation in the fintech sector, but here's why we disagree with his stance.
Straw man fallacy: IT Ministers’ defence of government exemptions in data protection law misses the point
Both the IT Minister and the IT Minister of State have chosen to avoid the actual concerns raised, and have instead defended against lesser...
The Central Board of Film Certification found power outside the Cinematograph Act and came to be known as the Censor Board. Are OTT self-regulating...
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
Twitter takes down tweets from MP, MLA, editor criticising handling of pandemic upon government request
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...