The head of the largest crypto exchange in the US reveals the company’s strategy for listing new digital assets on its platform.
In an interview with Lex Fridman, Coinbase CEO Brian Armstrong says that the first step in listing an altcoin on the exchange is to determine whether or not the asset qualifies as an unregistered security.
“We basically have a legality test. We check: ‘Do we think this is a security?’ If so, then it cannot be listed on Coinbase. And there is a very strict process that we go through for that.
With the current laws in the US, you can’t do that. We have received a Broker Dealer License from the SEC. We’re trying to work with them to get that started and hopefully one day we can trade real cryptos, but today that’s not possible in the US.”
Armstrong says that after legality comes safety. If all goes well, the crypto billionaire says Coinbase wants to more or less move forward and list the asset as part of its mission to list as many assets as possible and move away from the notion that it backs any of its altcoins.
Armstrong predicts there will eventually be “millions” of cryptocurrencies and that Coinbase could aim to position itself as the “Amazon” of cryptocurrencies, offering a wide range of products as long as they are not fraudulent or dangerous.
“Then we look at the cyber security of the crypto asset. Do we think there is a vulnerability in the smart contract or a possibility that someone could tamper with it without the customers’ permission?
We also look at some aspects of compliance such as: B. the actors behind it and any kind of criminal history and things like that. If we think it meets our standards for listing, basically that test of legality and everything for customer protection, then we want to list it because we want the market to decide at that point.
It’s a bit like Amazon or something, where a product might have three or five stars, but if it starts getting one star consistently, it’s probably fraudulent or defective or something, and maybe Amazon will remove it. Otherwise let the market decide what these things are…
I believe there will be millions of these products over time, so I hope it doesn’t make headlines every time we add a new product in the future.”
Featured Image: Shutterstock/sk99
Source: Crypto News Deutsch