According to the Wall Street Journal (WSJ), the largest cryptocurrency exchange in the USA which also offers crypto-currency wallet Coinbase approached the regulators with a request for Federal Bank license.
Citing a “person familiar with the matter”, the WSJ reports that Coinbase in the beginning of 2018 asked the office of the Comptroller of the currency, US (OCC) on obtaining a banking license.
A representative of Coinbase, declined to comment on the meeting, but added that the company “is committed to working closely with state and Federal regulators to ensure that we are properly licensed for the products and services that we provide”.
In early April, the WSJ reported that Coinbase is also exploring the possibility of registration as a licensed brokerage firm and platforms of electronic Commerce in the Commission on securities and exchange Commission (SEC). Earlier this week Coinbase announced plans to launch a new package of products oriented to institutional investors, such as hedge funds.
According to WSJ, the Federal banking license would allow Coinbase to offer their own services for storage and payment on the basis of the Charter of the OCC, which in turn could help to attract institutional investors. It would also allow Coinbase to deal with only one Federal regulator, rather than with multiple regulators at the local level, as is happening now.
Joseph Otting from OCC declared at the meeting of the banking Association in April that most of the FINTECH companies that seek to obtain banking licences in order to avoid working with many regulators do not undergo the procedure until the end:
When they come and after a conversation with us understand what it really takes to become a Bank, they leave the building with sour faces.