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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags internetInternet-based applications and servicesCoinbase

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments