By Mike Lempres, Chief Legal and Risk Officer at Coinbase
At Coinbase, our mission is to create an open financial system that brings about more innovation, efficiency and equality of opportunity in the world. To achieve this, we aim to be the most trusted cryptocurrency company in the space and core to that is excellence in compliance. In fact, we have often stated that products and services that act as a bridge to the traditional financial system are necessary to help the digital currency ecosystem grow.
As one of the few exchanges that operates under the NYDFS BitLicense, Coinbase works closely with state and federal regulators to ensure that our products adhere to all applicable regulations. At the same time, we advocate for a regulatory environment that fosters innovation while protecting investors.
Today we responded to New York Attorney General Eric Schneiderman’s Virtual Markets Integrity Initiative Questionnaire. We’re sharing the cover letter to our response here. Our letter outlines the steps we’ve taken around cybersecurity, customer support, platform reliability and market integrity to protect our customers and ensure the fairness of virtual currency markets including:
- Our anti-money laundering compliance program designed to build upon the highest levels of compliance in our industry.
- Our investment in industry-leading technology and practices to secure customers’ data and virtual currency assets, even as our commitment to security goes far beyond what the law requires.
- Our work to bring clarity to the issue of what assets we can support. For example, to help potential market participants, we published our Digital Asset Framework to provide transparency about how we consider listing new assets.
We believe this type of compliance will bring the industry as a whole closer to the levels of accountability, professionalism and transparency that Coinbase is committed to delivering. We look forward to continuing our work with regulators to drive progress in the cryptocurrency space to create a sensible and consistent approach to regulatory framework.
For more context, please reference my recent testimony before the House Subcommittee on Capital Markets, Securities, and Investment.