Coinbase, Exchanges

Is Coinbase Allowed in Texas?

In the United States, cryptocurrency exchanges are regulated by state and federal agencies. In Texas, the state’s securities commissioner has issued a cease and desist order to Coinbase, one of the largest cryptocurrency exchanges in the world.

The order alleges that Coinbase is offering unregistered securities in the form of digital tokens.

Coinbase is headquartered in San Francisco, but it has an office in Austin, Texas. The company allows users to buy and sell cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.

Coinbase also offers a cryptocurrency trading platform called GDAX.

The Texas Securities Commissioner’s order alleges that Coinbase is offering unregistered securities in the form of digital tokens. The order says that Coinbase is not registered with the state as a broker-dealer, exchange, or investment adviser.

NOTE: WARNING: It is not currently legal to buy or sell cryptocurrencies in Texas. Coinbase, a popular cryptocurrency exchange, is not licensed to operate in the state. Therefore, any transactions made on Coinbase in Texas are at the user’s own risk and may be subject to penalties from state or federal authorities.

The order also alleges that Coinbase is not registered to offer securities in Texas.

The order gave Coinbase 21 days to respond. It is not clear what will happen if Coinbase does not comply with the order.

It is possible that the state could take legal action against the company.

Coinbase has not yet released a public statement about the order. The company did not respond to a request for comment from CoinDesk.

The Texas Securities Commissioner’s office has taken action against cryptocurrency companies in the past. In December 2017, the office issued cease and desist orders to two cryptocurrency companies, Bitconnect and USI-Tech.

Both companies were accused of offering unregistered securities in the form of digital tokens.

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