Californian Regulators: “Coinbase is not regulated or licensed”

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Coinbase Trolled Over Minor Privacy Bug

ForexMinute.com — The Californian Department of Business Oversight (DBO) recently issued a press statement where it denied offering Coinbase any kind of business license status to operate in California.

The press release was in response to Coinbase website which openly proclaims itself to have been offering bitcoin trading services in California. This particular claim was further channeled on different media reports which, as of now, seems shady. Here is an excerpt from the note:

“Numerous press accounts about Coinbase’s Jan. 26 launch of Coinbase Exchange erroneously reported the Exchange has received regulatory approval from the State of California. 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.”

A representative from the company told coindesk.com that states like New York and California are currently working on their own Bitcoin regulations. “They exist in a regulatory grey zone”, he commented.

He further added that Coinbase is in touch with the concerned authorities.

From the way it looks, Coinbase might have received a Money Transmitter License but Bitcoin must not have been a part of it. This is by far the best case scenario.

We will stick to this story and update this article soon with more information.