Coinbase Not Regulated in California According to Regulator

When Coinbase announced this Monday that they would be opening the first regulated and licensed Bitcoin exchange in the US, it was a happy day for many Americans who now thought they had a good place to buy Bitcoins and the overall trust in the Bitcoin went up – So did the price.

While the price boost didn’t last for more than a day before it started falling a bit again, it still provided some of the best news in the Bitcoin industry in the past year. That news seems to be destroyed now by the California Department of Business Oversight (DBO), who sent out a release where they explain that Coinbase does not have a license to operate in the state with the money transmission laws that are applicant there.

 “The California Department of Business Oversight has not decided whether to regulate virtual currency transactions, or the businesses that arrange such transactions, under the state’s Money Transmission Act. California consumers should be aware Coinbase Exchange is not regulated or licensed by the State.” Jan Lynn Owen, Commissioner for the DBO said.

Coindesk.com reached out to Coinbase to understand why they list California as a state where it people can currently buy and sell Bitcoins, only to be told that California is in a “grey zone” regulatory wise. At the same time it was added that once there is any clarification, they will contact the necessary regulatory departments and obtain a license if possible.

Daniel Allermand

Daniel Allermand is a freelance writer, with more than 4 years of experience in the industry as an operator, affiliate and poker player. Daniel has decided it was time to try and bring more coverage about the industry to the general public by writing articles about everything from poker to casino.  

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