Coinbase CEO Brian Armstrong reveals what is required for altcoins to list on the exchange
The head of the largest crypto exchange in the US has revealed the company’s strategy for listing new digital assets on its platform.
In an interview with Lex Friedman, Coinbase CEO Brian Armstrong said that the first step in listing an altcoin on the exchange is determining whether the asset qualifies as an unregistered security.
“We basically have a test of validity. We check: ‘Do we believe this is a security?’ If so, it cannot be listed on Coinbase, and for that we have to go through a very rigorous process.
You can’t do that the way America has laws right now. We obtained a broker-dealer license from the SEC. We are trying to work with them to get that operational and hopefully one day, we can trade real crypto securities but today, that is not possible in the US.
Armstrong says that after legality comes security. If it all checks out, the crypto billionaire says that Coinbase more or less wants to go ahead and list assets as part of its mission to list as many assets as possible, moving away from the notion. That it supports any of its altcoins.
Armstrong predicts that there will eventually be “millions” of cryptocurrencies and Coinbase may be aiming to position itself as the “Amazon” of crypto, offering a vast selection of products as long as they are not fraudulent or dangerous. .
“Then we look at the cybersecurity of crypto assets. Do we think there is something wrong with the smart contract, or is there some way that someone can manipulate it without the permission of the customer?
We also look at some of the compliance portions of it, like the actors behind it and any kind of criminal history and things like that. If we believe it meets our listing standards, basically this test of legitimacy and all for customer safety, then we want to list it because we want the market to decide at that point.
It’s like amazon or something where a product can have three stars or it can have five stars, but if it starts getting one star consistently, it’s probably fraud or defective or something and maybe Amazon will remove it. Otherwise, you want to let the market decide what these things are…
I believe there will be millions of these properties over time, and so I hope it won’t become news every time we add to it in the future, basically. ,
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