Coinbase Reopens Service to Wyomingites After Regulatory Pivot
San Francisco-based cryptocurrency exchange Coinbase has reopened its services to Wyomingites after a three-year-long voluntary suspension of operations due to the states’ airy-fairy regulations hitherto. Recent crypto-friendly legislation in the Cowboy State have made it into a potential digital assets innovation hub in the U.S., and Coinbase has told state residents “back on” accordingly.
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Regulatory Conditions Favorable Now
In an August 3rd announcement on its blog, Coinbase declared it had renewed the relevant money transmitter license in order to reopen its services to Wyoming residents. The positive advancement comes after Wyoming state legislators alleviated the “fiat reserve requirement” regulation that previously compelled crypto firms to “double reserve the assets of state residents.”
Coinbase’s lead compliance exec Mike Lempres characterized the development as typifying how regulatory progress regarding cryptocurrencies should look like:
“Regulators and legislators can work together to foster innovation by either licensing cryptocurrency money transmissions or exempting cryptocurrency from money transmission laws. The leadership and partnership between the state legislature and Governor Matt Meade allowed for this new legislation to be signed into law, under which cryptocurrency companies in Wyoming are no longer required to double reserve the assets of state residents.”
In recent weeks, the Cowboy State has pivoted decisively toward rebranding itself as among America’s top crypto-friendly states. The evidence of that lies in the number of related bills passed in Wyoming this year, bills which have caused a stir in Washington by explicitly creating conditions favorable for cryptocurrency and blockchain development.
It’s a dynamic that has paved the way for crypto businesses to open shop — or in Coinbase’s case, reopening shop — to serve Wyomingites.
Some Users and Accounts Will Be Reunited
The news comes as a relief for Wyoming users who were locked out after Coinbase suddenly pulled out of Wyoming state in 2015, citing the state’s fiat reserve requirements as prohibitively expensive. As such, the exchange’s new announcement will reunite affected users with their digital asset balances that have remain untouched in the ensuing years.
Wyoming’s more laissez-faire laws have been in effect since March 2018, so it’s taken 5 months for Coinbase to officially greenlight operations there. Better late than never, as the saying goes, as Wyomingites will now be able to enjoy the same Coinbase products offered to users across the U.S.
Moreover, that leaves Hawaii as the only U.S. state left awaiting Coinbase support.
The reopening comes at an interesting time for users, as the exchange is imminently rolling out Ethereum Classic (ETC) support and is looking at adding five further cryptocurrencies in 0x (ZRX), Basic Attention Token (BAT), Cardano (ADA), Stellar Lumens (XLM), and Zcash (ZEC) on its platforms.
A lot has changed in three years, to say the least. And now a new office in Japan is next up on the horizon.
Was Coinbase late in reopening its services to Wyoming residents? Share your views in the comments section below.
Images via Coinbase, Pixabay