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The company is currently working on the regulatory front to make sure that these five new cryptocurrencies fall under the ambit of the existing jurisdiction.
In an official blog post, last Saturday, July 14, San Francisco-based crypto trading giant Coinbase announced that is it is “ exploring the addition of several new assets”. Currently, the exchange operator is in talks with different regulators and local banks to continue with the expansion following as many jurisdictions as possible.
The five cryptocurrencies that Coinbase wishes to add to its platform include Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC), and 0x (ZRX). One month ago in June, Coinbase announced listing of Ethereum Classic (ETC), a derivative of the original Ether (ETH) tokens. Ethereum Classic has a similar protocol architecture to that of the original Ethereum (ETH) and thus will be available for trading soon.
However, Coinbase noted that adding these new five digital currencies will require additional exploratory work at their end considering that they have a different architecture. As a result, the company said that it cannot guarantee on the timeline of release at this moment.
Moreover, the company said that owing to current regulatory changes and rules, there could be some restrictions like not being able to send or receive using a local wallet. This can also include that only transparent Zcash addresses shall be allowed for deposits and withdrawals. The company also said that some of the digital assets would be available in only specific jurisdictions before making their way to the United States. The blog post mentions:
“Going forward, you should expect that we will make similar announcements about exploring the addition of multiple assets. Some of these assets may become available everywhere, while others may only be supported in specific jurisdictions.”
Amid a lot of uncertainty going around development of the regulatory framework for digital assets, Coinbase is currently working on the regulatory front . The company states:
“Legal analysis is ongoing and will vary by jurisdiction. As we only plan to launch assets which are compliant with local law, some assets may only be available in specific jurisdictions.”
Moreover, drawing a leaf from the past controversy of internal trading during the adding of Bitcoin Cash to its platform, Coinbase has already made the announcement public this time. Moreover, the company has also told its internal team this time to avoid any form of an act which could put the company under scrutiny.
Although the cryptocurrency market has been disappointing so far in 2018, Coinbase is taking several measures to expand its business horizons and services. The company is also seriously working towards bringing institutional players to the crypto space while creating a conducive environment for them. Two months back in May, Coinbase announced four new institutional products, of which the Coinbase Custody already has gone live earlier this month.
According to the latest report, the meltdown in the crypto market has also resulted in a severe downfall in Coinbase App downloads.
“After many years of this, I’ve come to enjoy the down cycles in crypto prices more. It gets rid of the people who are in it for the wrong reasons, and it gives us an opportunity to keep making progress while everyone else gets distracted,” Armstrong posted. “We use the down cycles to build a strong foundation so we can thrive in the next growth cycle,” said Coinbase founder and CEO, Brian Armstrong, who is absolutely not deterred by this.