Coinbase, Exchanges

Is Coinbase Regulated by the SEC?

As the world’s largest cryptocurrency exchange, Coinbase is often at the forefront of regulatory issues. The San Francisco-based company is currently facing scrutiny from the US Securities and Exchange Commission (SEC) over its listing practices.

In March 2018, the SEC launched an investigation into whether Coinbase had violated securities lAWS by allowing customers to trade digital tokens that were not registered as securities. The probe is ongoing, and no formal charges have been filed.

NOTE: Warning: Investing in cryptocurrencies is highly speculative and carries a high degree of risk. While Coinbase is registered with the Securities and Exchange Commission (SEC), it is not regulated by the SEC as a broker-dealer, investment adviser, or an exchange or alternative trading system. As such, investors should perform their own due diligence and research when investing in cryptocurrencies through Coinbase.

Coinbase has been trying to clean up its act in recent months. In January, it hired a former SEC commissioner to help it navigate the regulatory landscape.

And in February, it announced that it would only list tokens that are compliant with US securities lAWS.

However, it’s unclear if these efforts will be enough to satisfy the SEC. The commission has taken a hard line on cryptocurrency exchanges in the past, and it’s possible that Coinbase could be hit with a heavy fine or even be forced to shut down if it is found to have violated the law.

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