Menu
Coinbase set to launch licensed Bitcoin exchange in the US

Coinbase set to launch licensed Bitcoin exchange in the US

The move follows plans for a regulated Bitcoin exchange by the Winklevoss twins

Bitcoin wallet provider Coinbase will launch the first U.S. licensed exchange for the digital currency on Monday, according to a Wall Street Journal report.

While pointing to a "Lunar" teaser website with a clock counting down to 9 a.m. Eastern Time Monday, Coinbase's Twitter account also posted a link to documentation for Coinbase Exchange, calling them "API docs for our new project."

The move by Coinbase follows plans announced last week for Gemini, a regulated Bitcoin exchange in New York that is backed by Cameron and Tyler Winklevoss, and reflects a movement to get financial authorities behind Bitcoin amid continued price declines, hacking and criminal cases as well as the collapse of mammoth Japan-based exchange MtGox 11 months ago.

That would go against Bitcoin's founding philosophy as an unregulated, anonymous currency, but if Bitcoin's latest price movements are any indication, traders don't seem to mind. Bitcoin jumped over US$30 on Monday, touching a high of $290 on tracking site CoinDesk. It hit $177 earlier this month, its lowest in over a year.

The Coinbase founders have regulatory approval in half of U.S. states including jurisdictions with big cities in New York and California, according to the Journal. The API (application programmer interface) documents show that the exchange will have no trading fees during a promotional period, after which it will charge 0.25 percent.

Coinbase already claims 2.2 million consumer wallets, 38,000 merchants and 7,000 developer apps. Last week, it announced it had raised $75 million from investors including The New York Stock Exchange, calling it the first time financial institutions made a major investment in a Bitcoin firm.

"2015 will be the year when institutional investors began moving into Bitcoin in large numbers," Jeff Garzik, a Bitcoin developer, said via email.

"Buying and trading bitcoins in the United States has always been a hassle, with many using overseas exchanges. Buying local is always more efficient, involves fewer fees, and is more likely to be compliant with the laws of your jurisdiction. These two exchanges will make Bitcoin more accessible to a huge target market."

Coinbase did not immediately respond to a request for more information.

Tim Hornyak covers Japan and emerging technologies for The IDG News Service. Follow Tim on Twitter at @robotopia.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags CoinbaseInternet-based applications and servicesinternet

Slideshows

Top 50 defining moments of the New Zealand channel in 2016

Top 50 defining moments of the New Zealand channel in 2016

Reseller News looks back on a tumultuous 12 months for the New Zealand channel, assessing the fallout from a year of sizeable industry change. Whether it be local or global mergers and acquisitions, distribution deals or job changes, the channel that started the year differs somewhat to the one set to finish it - Reseller News assesses the key moments that made 2016.​

Top 50 defining moments of the New Zealand channel in 2016
​Hewlett Packard Enterprise honours high achieving NZ channel

​Hewlett Packard Enterprise honours high achieving NZ channel

Hewlett Packard Enterprise honoured its top performing Kiwi partners at the second running of its HPE Partner Awards in New Zealand, held at a glitzy ceremony in Auckland. Recognising excellence across eight categories - from distributors to resellers - the tech giant celebrated its first year as a standalone company, following its official split from HP in 2015.

​Hewlett Packard Enterprise honours high achieving NZ channel
Nutanix treats channel partners to Christmas cruise

Nutanix treats channel partners to Christmas cruise

Nutanix recently took to the seas for a Christmas Cruise around Sydney Harbour with its Australia and New Zealand staff, customers and partners to celebrate a stellar year for the vendor. With the sun out, they were all smiles and mingled over drinks and food.

Nutanix treats channel partners to Christmas cruise
Show Comments