The cork was barely out of the champagne bottle when the celebration about bitcoin's first U.S. exchange came to a grinding halt this week due to a license snafu. While it will likely be cleared up quickly, the delay adds another question mark on whether the beleaguered cryptocurrency will finally start taking root on Wall Street and with consumers.
On Jan. 26, bitcoin announced a new exchange, Coinbase, the first regulated U.S. exchange. It was big news that gave bitcoin supporters and fans something to finally cheer about.
"Although Wall Street investment is currently possible, it is not currently an easy or streamlined process, but that is about to change in a big way," Matt Odell, co-founder and executive editor of CoinPrices.io, told Tech Times after the exchange debut.
Odell, prior to the license snag news, noted that Coinbase launched "a fully regulatory compliant and insured American Exchange," citing its connection with financial heavyweight investors, which include the former CEO of Citibank, and several venture capital firms.
"For the first time in bitcoin's short six-year history, potential investors can trade bitcoin on a fully regulated domestic platform partly owned by the largest stock exchange in the world, the NYSE," he noted.
But just days later those cheers turned to head shaking as it was revealed Coinbase launched without the required licenses in many states.
It has appeared to be yet another blow for the struggling transaction player, which is already facing two tough challenges ahead: getting consumers on board and support from Wall Street.
Odell's enthusiasm regarding bitcoin's future, however, remains just as positive as his initial view of the new exchange.
"The New York Department of Financial Services has made waves over the last two days over the fact that Coinbase does not have a BitLicense. They say that Coinbase isn't fully licensed in New York as result, but that is misleading, and Coinbase continues to operate in the state. The BitLicense has yet to be finalized so there was no way for them to comply with it at this time," Odell told Tech Times.
The state Department of Financial Services will require companies which act as financial intermediaries to obtain a BitLicense, which it plans to offer this year.
Odell clearly isn't worried the paperwork snag will seriously impact bitcoin or Coinbase's future.
"The future of bitcoin remains bright with strong support out of large financial players including major banks, venture capitalists, and the largest stock exchange in the world, the NYSE," added Odell.
