One of the things that every cryptocurrency investor should remember is that there are thousands of cryptocurrencies out there that you can go for. With more than 1,600 other cryptocurrencies out there apart from the popular ones, many of these digital currencies are bound to fail. And for this reason, cryptocurrency exchanges should be careful which crypto should be added in their platform.
It was recently announced by Coinbase, the world’s largest cryptocurrency exchange and brokerage that it is planning to add five new digital currencies into its platform. These five digital currencies include Cardano, Basic Attention Token, Stellar Lumens, Zcash, and 0x.
Though nothing is final yet, it was announced nonetheless. According to Coinbase, “Unlike Ethereum Classic, which is technically similar to Ethereum, these assets require additional work that necessitates contact with many external parties. To ensure that this news comes to you directly from us, we are publicly announcing our intentions. Please note that we are not guaranteeing the listing of any of these assets. We may list them with partial support, or only in specific jurisdictions. In particular, some assets may become available in other countries before the US”.
Kraken’s Humorous Response
Sarcastically, Kraken mentioned that on July 14 that they are already contemplating toad 1,600 new coins on their platform including all the other crypto assets listed on CoinMarketCap.
Kraken mentioned that “Exciting and important revelation for the community today. Kraken has been contemplating the exploration of maybe adding over 1600 new coins, pending the outcome of our highly sophisticated review process. For a glimpse of the possibilities (visit CoinMarketCap)”.
And it isn’t exactly hard to understand why Kraken chose to mock the Coinbase for their decision to actually include cryptos. Come to think of it, 0X and BAT are digital assets that have conducted initial coin offering in 2017. And for this reason, Coinbase isn’t exactly sure whether or not it these tokens are going to be considered by the US SEC as a security or not.
In order to add 0x and BAT, this will require additional work and collaboration with local financial authorities not to mention the SEC. What it means is that it can be costly on the part of Coinbase just to have a wider crypto adoption in the market.
But come to think of it, Coinbase is thinking ahead. Getting these cryptocurrencies into the platform will most likely benefit users. Coinbase is known for being open to working with regulators.
Coinbase to Add More Assets
Coinbase and Kraken have different approaches when it comes to regulatory uncertainty. In Japan, Kraken chose to stay away after new regulatory guidelines were implemented. This was their reaction when Japan implemented new rules and regulations for crypto exchanges operating in the country.
On the other hand, despite the possible additional regulatory scrutiny on Coinbase if it adds the digital currencies, it still chooses to get out of its comfort zone. The company said that “Going forward, you should expect that we will make similar announcement about exploring the additional multiple assets. Some of these assets may become available everywhere, while others may only be supported in specific jurisdiction”.