Coinbase Exchange Introduces ‘Institutional Core Principles’

Coinbase, the most popular cryptocurrency exchange in the United States, has detailed its “institutional core principles” in a Medium post released today. According to the post, these concepts will act as the platform’s “North Star as we design, develop, and operate our products. Ultimately, we intend for these core principles to drive us toward our goal of operating the most trusted venue for storing, trading, and interacting with the world of cryptocurrency.”

These principles are likely to gain good standing with some of the more significant institutions entering into the crypto sphere.

The First Principle

Principle one is to “Operate a fair and orderly market.”

Coinbase will consistently monitor the cryptocurrency market to ensure reliability. The exchange will do so with their Market Operations team—a group that actively checks for suspicious trading activity and who holds Coinbase operations up to traditional business practices.

Suggested Reading Learn why Coinbase is one of our favorite cryptocurrency exchanges here.

The Second Principle

Principle two is to “Protect our customers with institutional-grade infrastructure and processes.”

Only the highest levels of cyber-security are put in place to protect the user base. Data will be stored safely in Coinbase’s top-of-the-line cold storage solutions, including “geographically distributed storage vaults”. Teams will also continually search for new security technology while also either complying with or exceeding government regulation.

The Third Principle

Principle three is to “Enforce transparent market rules and governance.”

Cryptocurrencies and the blockchain are all about transparency. Coinbase is the same and will ensure that all assets have complete access to the crypto-specific “market rulebook” to establish an even playing field.

All trading fees and incentive programs will be made public, and Coinbase will oversee third-party audits to keep participants at an industry standard level of compliance.

The Fourth Principle

Principle four is to “Provide fair access to all market participants.”

This principle is similar to the third in that all participants must abide by the same rules. Market access is distributed equally to everyone, with admission methods documented publicly. The primary goal with this principle is to create a “safe and reliable ecosystem to participate in”.

The Fifth Principle

Principle five is to “Publicly disclose listing practices and market rules.”

All new assets and features added to Coinbase will be shown publicly. As it has always worked, the exchange will be very picky as to which coins it lists. All criteria will be available to everyone, and the Coinbase team will strive to “maintain strong relationships with liquidity providers in order to provide robust markets throughout the launch of an asset.”

With many holding back on crypto due to its inherent, unregulated nature, Coinbase detailing their fundamentals will hopefully encourage hesitant investors to move into the world of decentralized assets.

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