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How embracing regulation and compliance protects our customers

TL;DR: As we await regulatory clarity, Coinbase has set the industry standard for safety and compliance in crypto — it's the only way we know how.

By Coinbase

Company

, July 20, 2023

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Crypto is at an inflection point in the United States. 1 in 5 Americans currently holds crypto. Institutions are embracing its potential. But despite good-faith policy efforts, the U.S. still lacks a robust regulatory framework for crypto — pushing American consumers toward unregulated offshore companies in the process. 

67% of Americans believe the financial system needs an update, and Coinbase believes crypto and blockchain technology is an important part of the solution. It’s time to allow for a faster, more affordable, and more transparent system to exist — that’s the promise of crypto.

But to improve any system, you must work within it. This is where we’re fundamentally different: Coinbase was founded on the idea that introducing crypto to America requires maintaining the highest standards of integrity, transparency, and protection for our customers. As we await regulatory clarity, we’ve set our own high standards, as a model for the entire industry.

  1. We embrace the rule of law. We engage with regulators around the world and adhere to local laws and sanctions enforcement, including anti-money laundering and Know Your Customer practices. 

  2. We advocate for economic freedom. We actively work with regulators and Congress to preserve economic rights and opportunity, and we’re proud to represent the people’s interests in court when needed.

  3. Your crypto belongs to you. We hold all customer assets 1:1, maintain strict controls over the segregation of customer and corporate crypto assets, and take proactive steps to protect such assets from unwarranted seizure or appropriation.

  4. We support a fair and efficient market. We proactively monitor and mitigate against market manipulation, from wash trading to layering, spoofing, and front-running.

  5. We protect personal information. Data transparency and security are deeply important to us. We limit personal data collection and processing to the essentials — to serve customers, and for legal compliance — while maintaining best-in-class privacy standards.

  6. We are committed to decentralization. The blockchain brings further transparency and accountability to crypto, and Coinbase is proud to lead this innovation forward as we build out the ecosystem and onboard the next billion users. 

  7. We exist to serve our customers. If we can’t earn your trust, we don’t deserve to keep your business, and we’ll make it easy for you to take it elsewhere.

In a world of centralized products and traditional finance, these principles have helped us become the most trusted crypto exchange in the industry. As America begins adopting decentralized protocols, we’re helping build a system with more transparency, accountability, and equality of access. Our mission has always been to help increase economic freedom in the world — and it starts here, in America.

It’s time to update the system.

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