DBO Commissioner Clarifies Coinbase Licensing Status in California

Department of Business Oversight Commissioner Jan Lynn Owen today issued the following statement to correct erroneous reports that Coinbase Exchange has received regulatory approval from the State:

“Numerous press accounts about Coinbase’s Jan. 26 launch of Coinbase Exchange erroneously reported the Exchange has received regulatory approval from the State of California.  The California Department of Business Oversight has not decided whether to regulate virtual currency transactions, or the businesses that arrange such transactions, under the state’s Money Transmission Act.  California consumers should be aware Coinbase Exchange is not regulated or licensed by the State.”

In the Jan. 26 announcement, Coinbase called the Exchange a platform for bitcoin trading.

California consumers should contact the Department of Business Oversight to check on the licensing of companies, investments or other financial services they are considering by visiting the financial services licensee listing or calling the Department’s toll-free Consumer Services Office at 1-866-275-2677.