Cryptocurrency exchange Coinbase is looking to circumvent regulatory hurdles and add new coins to its portfolio with the acquisition of Paradex, a service which allows users to trade cryptocurrencies without relying on a trusted third party.
Paradex, which launched in beta in January 2018, is a so-called relayer built on top of the 0x platform. This means it provides users with a way to trade ERC20 tokens — a large ecosystem of cryptocurrencies built on top of Ethereum — directly from their digital wallets.
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This is an important move for Coinbase, which is the top U.S. cryptocurrency exchange with more than 20 million customer accounts and $20 billion in crypto-assets.
The exchange currently lists only four cryptocurrencies: Bitcoin, Ethereum, Litecoin and Bitcoin Cash. Despite customer demand for more (there are thousands of cryptocurrencies out there, 23 of them with a market cap of over $1 billion), Coinbase has been wary of adding new coins due to regulatory pressure from the SEC, which (possibly) sees many of these as unregulated and unregistered securities. Read more Read more from mashable.com…
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