Nevada authorities file lawsuit against Coinbase over unlicensed wagering

Nevada state regulatory authorities, including the Nevada Gaming Control Board (NGCB) and the Department of Business and Industry, have filed a lawsuit against cryptocurrency exchange giant Coinbase, alleging the company has been operating unlicensed wagering services within the state.

The complaint, lodged in state court, centers on Coinbase’s offering of perpetual futures contracts and other derivatives products to Nevada residents. State regulators argue that these financial instruments constitute unregulated wagers under strict Nevada gaming laws, which mandate that any activity involving bets or wagers must be licensed and closely monitored by the NGCB.

Regulators assert that Coinbase, which is neither a licensed gaming operator nor a registered broker-dealer in the state for these specific products, has been skirting state law, potentially exposing Nevada consumers to excessive risk without the necessary regulatory oversight designed to protect the public. The state emphasized that Nevada has the most stringent gaming regulations in the United States, and these regulations apply broadly to any form of betting.

The lawsuit seeks an immediate injunction to force Coinbase to cease offering the alleged wagering products to Nevada residents. Furthermore, the authorities are pursuing civil penalties and restitution for any financial harm caused by the unlicensed operation. Coinbase has yet to issue a comprehensive official statement regarding the specifics of the Nevada legal action, but industry analysts anticipate a vigorous defense, arguing that their offerings are highly regulated financial products, not conventional gambling.

Source: Nevada authorities file lawsuit against Coinbase over unlicensed wagering