Connect with us


Bitcoin [BTC], Ethereum [ETH] and XRP to be a part of Coinbase Custody Trust after DFS approval

Akash Anand



Bitcoin [BTC], Ethereum [ETH] and XRP to be a part of Coinbase Custody Trust after DFS approval
Source: Unsplash

The Department of Financial Services [DFS] of the United States announced on October 23 that Coinbase, a leading cryptocurrency exchange, has received approval from the state department to act as a cryptocurrency custody.

Bitcoin [BTC], Bitcoin Cash [BCH], Ethereum [ETH], XRP, Ethereum Classic [ETC] and Litecoin [LTC] are the six cryptocurrencies that will come under the ambit of the Coinbase Custody Trust Company program.

The development was revealed by Maria T Vullo, the Financial Services Superintendent, who stated:

“New York continues to be a leader in creating, fostering, and responsibly regulating a financial services marketplace that promotes innovation, safeguards the industry and protects consumers through strong supervision. Today’s approval further demonstrates that the state regulatory system is the best arena in which to responsibly supervise the growing fintech industry within a sound and compliant framework.”

Although XRP is part of the list for the custody program, it is still not available for trade on the Coinbase platform, unlike the other five cryptocurrencies. Coinbase’s state backing comes in the wake of other cryptocurrency custody platform like BitGo receiving a boost from government organizations.

The move was also praised by Asiff Hirji, the Chief Operating Officer of Coinbase. He stated that the New York DFS has been a shining example of a governing body for a long time. He added that it is great that the organizations are propagating the responsible growth of the cryptocurrency industry. Hirji commented:

“The New York State Limited Purpose Trust charter, which now enables Coinbase Custody to act as a Qualified Custodian for crypto assets, builds on our unparalleled success as a crypto custodian while holding the company to the same exacting fiduciary standards and oversight of other, mature financial institutions operating in New York.”

With the latest approval of the Coinbase Trust Company, it becomes the eleventh different organization to be approved by the Department of Financial Services.

Coinbase Custody was launched on July 2 to target institutional investors that could take part in the cryptosphere along with retail investors. The subsidiary of Coinbase offers features such as on-chain segregation of cryptocurrency assets and multiple layers of security.

Subscribe to AMBCrypto’s Newsletter


HitBTC responds to allegations of insolvency, refutes claims made by Redditors




HitBTC responds to allegations of insolvency
Source: Unsplash

HitBTC, a Hong Kong-based exchange has been the center of accusations among users on Reddit, Twitter, and other forums. HitBTC users started complaining about issues regarding withdrawal and extensive procedures after one particular user @ProofofReserach put out a thread alleging insolvency of HitBTC.

To put an end to all the accusations, HitBTC has broken its silence with a blog post explaining their side of the story. According to HitBTC, their systems performed well during the winter of 2017-18, however, HitBTC mentioned that due to overwhelming demand for the services, they experienced bottlenecks at an operational level.

Referring to the BitcoinExchangeGuide article, HitBTC responded:

“A widely quoted article, in its entirety, is based on only 2 AML cases. One of them was initiated as part of the investigation into the December, 2018 BTCP security breach, at the request of the coin’s core team. Unfortunately, there is no clear indication of the nature of the second case that can be discerned from the article. The author of the article failed to track the deposit/withdrawal dynamics that did not uncover any irregularities. A simple block explorer or our public System Monitor would suffice for these purposes”

Additionally, referring to the altcoins being added and removed from the platform, the exchange said that they were honored to work with a diverse range of projects, however, since the crypto sphere was still nascent, there were lapses in their judgment in assessing the integration partners. With the above-mentioned prominent cases, HitBTC also addressed other topics.

@ProofofResearch replied to HitBTC’s blog:

“Is there a reason why you’re unable to tell people us where your Bitcoin storage is at? If what I published is as untrue as you claim it is, then providing a wallet address where your Bitcoin funds are stored will go a long way in *proving that*.”

Subscribe to AMBCrypto’s Newsletter

Continue Reading