Coinbase, the San Francisco-based, popular cryptocurrency exchange has made a return to Wyoming after almost three years. The announcement was published on the exchange’s official blog on Saturday.
Back in 2015, Coinbase decided and announced that the business would not be profitable after regulators included Coinbase in the Money Transmitter Act. In short, the act required the cryptocurrency exchange to have something called a “double reserve.” As expected, this has proven to be too much for Coinbase which was then required to hold fiat currency reserves for all crypto assets on the consumer’s behalf.
This double reserve was necessary if the company wanted to renew the money transmitter license. As history would have it, Wyoming passed a bill in March 2018 that amended the Money Transmitter Act. The newly amended bill provides exceptions for cryptocurrencies.
No more double reserve
The blog post also describes the exact changes that the passed bill has on crypto exchanges, noting that “cryptocurrency companies in Wyoming are no longer required to double reserve the assets of state residents.”
Thanks to this license renewal, Coinbase customers from the cowboy state can now regain access to funds stored in their accounts and continue to trade cryptocurrencies. “We believe this action by Wyoming will spur innovation and economic activity for individuals, families, and communities across the state,” the company stated.
Whether more crypto exchanges will start their operations in Wyoming remains to be seen. However, for now, the citizens of Wyoming will have to do with Coinbase which should be enough for everyone’s needs.