Another security-focused bitcoin site launches

Online bitcoin storage company Coinbase launched on Monday what it’s calling “the first regulated bitcoin exchange based in the U.S.”

“With this launch our goal is to bring increased stability to the bitcoin ecosystem,” the company said in a blog post.


Coinbase’s announcement comes just days after bitcoin investors Tyler and Cameron Winklevoss announced a similar exchange in New York City, promoted as free of hacks, insured by a New York based-bank and compliant with expected upcoming New York state bitcoin regulations.

Bitcoin exchanges allow users a platform to trade the digital currency with one another. These two recent attempts are intended to bring some much-needed confidence to what has been a shaky year for exchanges.

Some bitcoin backers have been spooked by number of high-profile hacks at major online bitcoin exchanges over the last year.

Mt. Gox, the world’s biggest bitcoin exchange at the time, went bankrupt after a suspected hack caused the company to lose $475 million worth of the digital currency. More recently, Bitstamp lost roughly $5 million in bitcoins to hackers.

But with the news of the two exchanges, the value of bitcoin has rebounded in recent days after steadily dropping for months.

The San Francisco-based Coinbase Exchange says it’s backed by the New York Stock Exchange, initially approved to operate in 24 states and insured against hacking losses.

Capitol Hill lawmakers have been skeptical at times about the virtual currency’s anonymity and vulnerability to cyberattacks.

Sen. Joe ManchinJoseph (Joe) ManchinDemocratic unity starts to crack in coronavirus liability reform fight Stakes high for Collins in coronavirus relief standoff The Hill's Coronavirus Report: Surgeon General stresses need to invest much more in public health infrastructure, during and after COVID-19; Fauci hopeful vaccine could be deployed in December MORE (D-W.Va.) at one point even called on regulators to ban bitcoin, but retracted his call after federal watchdogs moved to tighten oversight.

Financial regulators will consider even stricter guidelines in 2015 to enhance reporting requirements for companies using bitcoin.