Coinbase start-up set to launch regulated US Bitcoin exchange
US bitcoin payment start-up Coinbase said it will be first firm to regulate the virtual currency with a US exchange after it recently gained an extra $75m in funding.
The New York Stock Exchange and USAA are among the start-up’s investors, and the firm told the Wall Street Journal that it has won “regulatory approval” in half of all US states.
A ‘BitLicense’ has been proposed by the New York Department of Financial Services in a bid to regulate the new virtual monetary system.
Coinbase headed a five-month process to gain the relevant licences and approvals in the US. It also operates its exchange services in 19 other countries. Whether a US customer will be able to use the same service will depend on whether it is approved in their state.
A single bitcoin costs $263 at the moment, falling as low as $185 earlier in the month while it soared above $1000 in 2013.
The currency’s volatile past has made it difficult to predict when it will stabilise but several large brands have now begun to accept bitcoin, including Dell, Mozilla and Wikipedia.