The US Securities and Exchange Commission sues the virtual currency exchange `` Coinbase '' as `` selling virtual currency without registration ''



The US Securities and Exchange Commission (SEC) has sued the virtual currency exchange `` Coinbase '' for `` setting up an unregistered exchange in the United States ''. The SEC

sued Binance, one of the world's largest virtual currency exchanges, in June 2023, and large-scale exchanges have been sued one after another.

SEC.gov | SEC Charges Coinbase for Operating as an Unregistered Securities Exchange, Broker, and Clearing Agency
https://www.sec.gov/news/press-release/2023-102

SEC sues Coinbase over exchange and staking programs, stock drops 12%
https://www.cnbc.com/2023/06/06/sec-sues-coinbase-over-exchange-and-staking-programs-stock-drops-14percent.html

The SEC points out that Coinbase has facilitated cryptocurrency trading on unregistered exchanges and has earned billions of dollars (hundreds of billions of yen) since 2019.

SEC Chairman Gary Gensler said, ``Coinbase illegally provided its functions as a stock exchange, stockbroker, and clearing house despite being regulated by the securities laws.'' It emphasizes that it violated securities laws. ``Coinebase was fully aware of the potential application of securities laws to its activities, but decided not to comply with securities laws,'' said Garbill S. Grewal, SEC's Director of Enforcement. I was deliberately avoiding it,' he said.

There has been a long debate as to whether or not the 'virtual currencies' handled by cryptocurrency exchanges such as Coinebase correspond to 'securities' subject to SEC regulation. The SEC filed a lawsuit against Binance and Coinbase in June 2023, and concluded within the SEC that the cryptocurrencies handled by both companies are worth securities.

Binance, a virtual currency exchange, is sued by the Securities and Exchange Commission, suspicion of ``selling unregistered virtual currency''-GIGAZINE


by Web Summit

On the other hand, Coinebase CEO Brian Armstrong said, ``The SEC has reviewed Coinebase's business and will allow it to be listed in 2021.'' ``Coinebase does not handle securities.'' ``SEC and the Futures Trading Commission. (CFTC) has expressed conflicting opinions, and we have not come to a clear conclusion as to what the securities are,' he said, appealing that Coinbase does not violate the Securities and Exchange Law.




Coinebase will suspend operations in Japan in January 2023 due to ``changes in the market environment''.

Halting Operations in Japan
https://www.coinbase.com/blog/halting-operations-in-japan



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