Crypto Exchange Coinbase Resumes Service In Wyomingbr>
Cryptocurrency exchange Coinbase has reopened its services to residents in the US state of Wyoming.
In June 2015, Coinbase suspended its services in the state due to banking regulatory policies. At the time, the Wyoming Money Transmitter Act required Coinbase to maintain dedicated fiat currency reserves in amount equal to the aggregate face value of all funds held on behalf of customers.
“Although Coinbase securely maintains 100% of all customer funds, it is impractical, costly, and inefficient for us to establish a redundant reserve of fiat currency in equivalent value,” Coinbase said at the time.
In March of this year, however, Wyoming Governor Matt Meade signed a bill that amended the Money Transmitter Act to provide an exemption for cryptocurrency, which means crypto firms in the state are no longer required to double reserve the assets of state residents.
In a blog post, Coinbase announced that the Wyoming Division of Banking approved its money transmitter application, allowing Wyoming customers to once again use Coinbase products — particularly Coinbase Consumer — to buy, sell and use cryptocurrencies.
“Regulators and legislators can work together to foster innovation by either licensing cryptocurrency money transmissions or exempting cryptocurrency from money transmission laws,” said Mike Lempres, Chief Legal & Compliance Officer at Coinbase. “The leadership and partnership between the state legislature and Governor Matt Meade allowed for this new legislation to be signed into law. Now Coinbase and other compliant, regulated cryptocurrency companies can serve Wyoming customers in the same way we serve customers from nearly every other state.”
Lempres added that they believe this action by Wyoming will spur innovation and economic activity for individuals, families and communities across the state.