Crypto exchange giant, Coinbase, resumes its services in Wyoming after a three-year hiatus. This move was made after the state successfully passed a couple of bills that were aimed towards creating a favorable climate for the blockchain industry.
The San Francisco-based exchange announced in a blog post that it has renewed its state-level money transmitter license. By acquiring this license Coinbase is now able to resume its services in Wyoming after locking investors out of their accounts three years back.
In June 2015, Coinbase had abruptly shut down its services in Wyoming after the state regulators informed the firm that as per the Money Transmitter Act, it needed them to double reserve customer assets. They were supposed to achieve this by holding fiat currency reserves that were equivalent to the value of crypto assets entrusted to the firm’s custody.
The exchange at that time said that although it securely maintains 100 percent of all customer funds, it is costly, impractical, and inefficient for them to establish a redundant reserve of fiat currency in equivalent value.
Coinbase then abruptly shut down its services from Wyoming without giving the investors time to withdraw their fiat or cryptocurrency funds from the platform, as mentioned in the CCN report. Since then those funds remained in limbo even after the state passed a series of bills earlier this year to be more accommodating towards blockchain and cryptocurrency start-ups.
The HB-19 bill exempted cryptocurrency companies from the onerous double reserve requirement as required according to the Money Transmitter Act. Yet the months continued to drag on without the Coinbase exchange restoring services in the state. Although the exchange has resumed its services in Wyoming, it is not clear whether investors will now feel secured placing their assets in the company’s custody as they once did.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]