- Coinbase Inc., the US-based leading cryptocurrency exchange, has hired Jeff Horowitz, former Pershing’s head of compliance.
- Coinbase stated that the hire is an important step to legitimizing cryptocurrencies in the eyes of regulators and institutional investors.
United States: Coinbase Inc., the US-based leading cryptocurrency exchange, has hired Jeff Horowitz, in its quest to beef up its compliance team.
According to Coinbase, hiring Horowitz, who was the former Pershing’s head of compliance, is part of its move to legitimize cryptocurrencies before institutional investors and precautious regulators.
Coinbase announced today Tuesday 31st July 2018 that it will appoint Jeff Horowitz as its first-ever chief compliance officer. Horowitz was Pershing’s former global head of compliance and managing director. Pershing is a division of BNY Mellon which specializes in brokerage settlement, clearing, and custody.
Asiff Hirji, Coinbase’ President, and Chief Operating Officer stated today in a blog post that:
“As Coinbase — along with the cryptocurrency space as a whole — grows and matures, continued regulatory compliance across all the varying jurisdictions globally will be critical…Adding Jeff Horowitz to our team is one more important step along this journey.”
Jeff has acquired a wealth of knowledge in the area of regulatory compliance before he became Pershing’s global head of compliance, Jeff headed the anti-money laundering and compliance programs at Salomon Brothers, Goldman Sachs, and Citigroup, and also functioned as one of the banking regulators with the Federal Deposit Insurance Corporation.
Coinbase’s action at this time seems to right on time as Bitcoin, the largest cryptocurrency by market cap has dropped more than 60% this year since its all-time high of $20,000 of last December, which was mostly attributed to activities of retail investors
Notwithstanding this drop in the value of total cryptocurrency market, Coinbase has maintained re-investing its gains in everything from acquisitions to institutional investors’ products, to including a fully licensed broker-dealer.
However, institutional investors who are risk-averse have been so cautious of any possible threats that may come up with the digital currency. The drop in the value of most cryptocurrencies is not unconnected from regulatory crackdowns that hit the crypto world, series of cyber attacks on crypto exchanges, and lack of new investors in the crypto market.
National regulators have also been wary about the dangers associated with digital currencies. The US SEC cracked down on fundraising fraud known as ICOs and recently refused to approve what seems to be the first bitcoin ETF. US SEC emphasized issues relating to investors’ protection and market manipulation.