Coinbase resumes its operations in Wyoming after a four-year break according to the announcement made by Mike Lempres, Chief Legal & Compliance Officer at Coinbase on August 4.
Coinbase had to suspend its activities in Wyoming since the regulations required exchanges to keep fiat reserves, which was inefficient at that time. Now the regulations are different. Coinbase applied for a renewal of its money transmitter license and it was promptly approved. The announcement recognizes several authorities for their assistance and cooperation, namely:
“Wyoming House of Representatives Majority Floor Leader David Miller, State Senator Eli Bebout, members of the Blockchain Task Force, Commissioner Forkner, Deputy Commissioner Mulberry, along with the examiners and staff from the Wyoming Division of Banking.”
Lempres added that they “will continue collaborating with legislators and regulators across the U.S. and worldwide as [they] work to create open financial system for the world.”
WHY IS IT IMPORTANT?
1. Authorities update regulations to keep up with the evolving crypto-sphere and consider operational crypto exchanges as a benefit as long as they are meeting the standards and regulated properly.
2. After the Coinbase case, other exchanges can operate and serve in this state.
Earlier in June, Coinbase has introduced its new political action committee (PAC), which can be utilized as a political campaign fundraiser, otherwise illegal for companies in the U.S. to directly donate money to fuel a desired political agenda.