Coinbase CEO says regulation and cybersecurity are 2 of the biggest threats to cryptocurrency

Coinbase CEO says regulation and cybersecurity are 2 of the biggest threats to cryptocurrency

Coinbase CEO Brian Armstrong said two of the biggest risks to cryptocurrency are cybersecurity and regulation.

The executive spoke with CNBC on Wednesday ahead of his company's public debut via a direct listing. Coinbase is the first major cryptocurrency company to go public, representing the industry's booming growth. 

But as the company moves into the public market, Armstrong noted that scrutiny of Coinbase may also mount as people seek to understand the burgeoning business. And because of that, regulation of the industry poses one of the biggest risks to the market, a risk that's "right up there with cybersecurity." In its S-1 filing, the company explicitly listed cyber attacks as a risk factor for the company, given that Coinbase is an online platform that manages a digital currency.

"We're very excited and happy to play by the rules," Armstrong told CNBC, regarding potential regulation. "And basically, we just ask that, hey, we want to be treated on those level playing field with traditional financial services at the very least and not have any kind of punishment for being in the crypto space."

Read more: A phone call from Coinbase CEO Brian Armstrong the night before a $100 million deal left one VC feeling 'nauseous.'

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