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by gigq
4037 days ago
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This would only make sense if when you moved bitcoins into coinbase they immediately converted them to USD. In that case, sure they would need to have USD on hand to cover your funds. In the case where you are storing the bitcoins with coinbase and not converting it they just need to make sure they have the bitcoins on hand. Forcing coinbase to both hold bitcoin and USD to cover the value of those bitcoins makes no sense. |
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> If Coinbase became a bank or a broker, they'd be subject to US Federal regulation and audits, but would no longer need state licenses. They're trying to sleaze by as a "money transmitter", while acting as a depository institution, and it's not working out for them.