There will be multiple hurdles for you to accomplish the arbitrage that you're thinking of. Aside from Coinbase not allowing that (ultimately) you will have to register with FINCEN; FINRA; and the SEC as a money transmitter (for federal) then you'll more than likely have to register with your state (dependant on the state you live in). There will be KYC that you will have to comply with as well (which is a pain). On top of that if you want to have some measurement of protection so that you're personal assets will be minimally harmed you would have to form a company to deal with all of that and taxes that will come from it (yes taxes will hit you hard here with all the transfers that will happen). Capital gains tax will more than likely eat at your profits if the fees don't from LBC and Coinbase. And if you do have a bank that will do business with Coinbase (not all of them will) then you would eventually have to explain where the money from Coinbase is coming from, if not to the bank then the IRS when you get audited.