In their most recent announcement, one of the most important cryptocurrency exchanges in the world, Coinbase, revealed their new listing policy.
“A new listing process will allow us to rapidly add most digital assets that meet our standards and are compliant with the local law while providing our customers with the tools to discover, evaluate, trade, and use digital assets,” the company unveiled.
Compliance With Local Laws
As a regulatory compliant company, Coinbase is taking a different approach to new cryptocurrency listings.
Many different jurisdictions allow trading of certain cryptocurrencies and forbid the others. Thus, Coinbase is going to comply with different sets of rules and list only those assets that are in accordance with the given government’s regulation.
Even though the individual approach could prove to be more complicated for the company, not all cryptocurrencies are going to be available for trading on Coinbase exchange in every country.
Small Number Will Become Substantially Bigger
Up until now, Coinbase supported only Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), and Litecoin (LTC) trading on their platform.
Nevertheless, even before the recent announcement about the change of listing policy, in July, the exchange announced that they were seriously considering to add the support for Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC) and 0x (ZRX), which is probably going to happen with the new campaign.
“With this shift in process, our customers can expect us to list most high-quality assets over time,” the exchange declared.
Listings Review Process
Coinbase also revealed the process which all pretendants for listing have to pass through.
- An initial review by Coinbase’s internal asset selection committee.
- A legal and risk review phase.
- An approval process from the Coinbase executive committee.
- A specific assessment of core code and engineering facilities.
- The final assessment of the asset’s liquidity capabilities, price stability, and financial performance.
Coinbase is Responding to Customers’ Needs
According to the vice president, and general manager of Coinbase Consumer, Dan Romero, “It’s responding to what customers want. Adding more assets is directly something customers are telling us.”
“So, ultimately, by adding more assets, we are going to increase trust and make the platform easy to use for customers,” Romero explained and added that more tradeable cryptocurrency assets are going to make Coinbase more competitive on the market.
The Race is On
The change of the policy can very well mark the ending of Coinbase’s entry/exit exchange reputation.
Many users were using the exchange as a platform for exchanging FIAT for some of the most traded coins, which were then transferred to other cryptocurrency trading platforms with a wider choice of assets, or vice versa.
With the new approach and its regulatory compliance, Coinbase threatens to overthrow the established industry’s giants.