Coinbase adds custody services, Japan lets its crypto association self-regulate, and the HTC Exodus only takes crypto.
New York Authorizes Coinbase to Create Crypto Custody Trust
Per an announcement[1] Tuesday, the New York State Department of Financial Services (NYDFS) approved an application from Coinbase to operate a crypto custody trust. The trust, the Coinbase Custody Trust Company LLC, will be allowed to offer secure custody services for bitcoin, bitcoin cash, Ether, Ethereum classic, XRP, and Litecoin. This is despite Coinbase not currently trading XRP.
"New York continues to be a leader in creating, fostering, and responsibly regulating a financial services marketplace that promotes innovation, safeguards the industry and protects consumers through strong supervision," said NYDFS superintendent Maria Vullo, per the announcement. "Today's approval further demonstrates that the state regulatory system is the best arena in which to responsibly supervise the growing fintech industry within a sound and compliant framework."
Custodial trusts or custodial accounts are accounts set up with a custodian, whom takes fiduciary responsibility for them. The news comes as several other crypto firms[2], such as BitGo, Northern Trust, and Prime Trust – also received regulatory permission to serve as custodians. Earlier this year, Coinbase announced it was seeking to receive a broker-dealer license and a registered investment advisor license through the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority. These licensures would be needed to clear Coinbase to sell securities.
Japan Crypto Earns Self-Regulated Status
As reported by Reuters[3], the Japanese Financial Services Agency (FSA) Wednesday granted its crypto industry self-regulatory status. The Japan Virtual Currency Exchange Association (JVCEA) will now police and sanction the country's exchanges. The Japanese crypto community has been under scrutiny following two high profile thefts in recent months.
