Coinbase Launches First Regulated Bitcoin Exchange

Bitcoin is set to make a significant jump into mainstream markets on Monday as Coinbase Inc. is planning to launch the cryptocurrency’s first regulated exchange in the U.S.

The exchange’s roll out comes just a week after the company secured $75 million worth of funding from prominent investment groups including the New York Stock Exchange in order to expand its operations.

Government Link

Coinbase hired former Senate aide John Collins earlier in 2014 in an effort to push forward the company’s dialogue with U.S. policymakers and make strides toward regulatory approval.

So far, the bitcoin exchange has been approved in 24 jurisdictions including high population centers like California and New York. In doing so, Coinbase hopes to offer customers a secure way to trade bitcoin and eventually become the largest exchange in the world

The Setup

The new exchange will allow users living in an approved state to trade the cryptocurrency for a nominal 0.25 percent commission fee. However to begin with, the exchange is offering users two months free of commission changes.

Growth Opportunities

The Coinbase exchange is already servicing 19 foreign countries and says its database has roughly 2.2 million customer wallets. In the coming months, Coinbase says it plans to continue pushing for regulatory approval in all 50 U.S. states and move forward with its international expansion to include an additional 11 countries worldwide. 

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Though Coinbase is the first regulated bitcoin exchange, it is unlikely to be the last. The Winklevoss twins, whose involvement in a public dispute over Facebook Inc. FB earned them notoriety, have also claimed that they are planning to roll out a U.S.-based exchange called Gemini in the coming year.