-= DJ BOOTH =-
-= EPISODE 17 =-
Owners of 1% of all bitcoins, Cameron and Tyler Winklevoss announced that they will be launching a regulated bitcoin exchange named Gemini – which is the Latin word for “twins”.
The exchange will be operated out of New York, and this announcement comes before the BitLicence has even been finalised.
The winklevii also plan to launch a bitcoin ETF, but who knows when that will actually happened. It’s currently with the SEC waiting for approval.
The twins have always been bullish on bitcoin recently saying the marketcap could easily reach trillion.
But the Winklevoss just cant catch a break. Not only does every article about them mention their lawsuit with Mark Zuckerberg over the claim he stole their idea of Facebook, but now Coinbase has come along to steal their thunder.
Not only has Coinbase announced they will be launching a bitcoin exchange, they ACTUALLY launched one!
Let’s not get carried away. The Coinbase Exchange is only licensed to operate in 14 US states and in 8 that dont need licenses. Plus, the California Department of Business Oversight released a statement denying that Coinbase is licensed to operate in the state under existing money transmission laws, and New York’s Department of Financial Services says they have not issued any license to Coinbase yet either.
While taking a bit of a jab at Coinbase, Cameron Winklevoss told Pete Rizzo at Coindesk that:
“We aren’t interested in trying to find a way to be semi-operational, or operate around the fringe or hack our way in.”
Although the Coinbase Exchange is backed by the New York Stock Exchange, many order types are not available just yet and reviews have suggested that it may have been released a bit too soon. It’s great looking software, but lacking features found in high-end trading platforms.
Now, Coinbase are claiming to be the *first* regulated bitcoin exchange in America. Well, no. not true… at all. Most US states require exchanges to have a money transmitter license, which is regulated. Therefore there are many regulated bitcoin exchanges operating in the US already such as CampBX, Kraken, Coinfloor, coinX, coinmarket, cryptsy and others.
So then why is this a big deal?
Well, Coinbase are playing the marketing game. The winklevii announced their exchange, so Coinbase HAD to announce something about their own.
It’s no coincidence that Coinbase received million in venture capital funding last week.
If you’re a US-based investor or large volume trader, would you feel comfortable sending millions of dollars to Slovenia or China? US regulated exchanges encourage those millions of dollars to stay within US borders, all backed by FDIC insurance and partner banks.
So Coinbase launch an unfinished and limited exchange, while the Winklevoss are trying to get everything in order before officially opening their doors.
Then there’s LedgerX who has received over .5 million funding and have yet to launch their fully regulated Bitcoin derivatives exchange and clearing house.
Why is regulation so serious?
If approved by the CFTC, LedgerX would be the first regulated Bitcoin options platform to list and clear fully-collateralized, physically-settled Bitcoin options for the institutional market. LedgerX has also applied for registration with the CFTC as a swap execution facility and as a derivatives clearing organization.
-= KEEP THE FUN HASHING THROUGH THE BLOCKCHAIN =-
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