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Coinbase Updates KYC And Now You Need A Bank Statement To Trade Bitcoin


Important facts:

On the internet, they rejected Coinbase’s measurement standards. They even proposed to stop using the exchange.

A large number of Bitcoins have left Coinbase for other unknown wallets.

“Worse than the FBI and IRS combined.” This is a criticism of users. When I tried to use Bitcoin on the centralized exchange Coinbase, I found a set of requirements and requirements closer to that of a bank. It is not a cryptocurrency exchange.

Mira Christanto, a researcher at market analytics firm Messari, tweeted that Coinbase’s “Know Your Customer” (KYC) policy update would require banks to provide account statements at least three months in advance. We also asked for an explanation of when cryptocurrency trading began and the revenue it generated.

Quite excessive. A regulated entity may require only bank statements, no proof of funds, and may not need an explanation of when it entered the cryptocurrency market or how its fortunes grew. You do not need to add the number from your other passport (if any) other than the ID you submitted.

Mira Christanto, a researcher at market analytics firm Messari.

He also shared a picture of Coinbase reading some of the requirements to start using the platform. Requests range from providing detailed information about your current (past) job and salary certificates to telling you if you have cryptocurrencies in another digital wallet.

But is this true?

To verify the information, CriptoNoticias has reviewed the company’s privacy policy and terms. We have confirmed that financial-related information among the requested personal information is in the personal information protection section of the official website of the exchange.

There, they admitted to requesting bank information, such as bank name, account type, routing number, the account number itself, and transaction details.

As they clarified, companies will only request such data “to the extent necessary to comply with legal or contractual obligations.” It also claims to be subject to the U.S. Bank Secrecy Act (BSA).

We also talked about questions asking for your name, date of birth, nationality, gender, utility bill, photo, phone number, ID, passport, driver’s license (and details). They also requested other necessary information to fulfill their legal obligations under the “Financial or Anti-Money Laundering Act”.

They also asked the exchange to tell the exchange details such as the name of the recipient, the name of the sender, and the amount.

While it hasn’t been made clear that everything is part of the KYC requirements, most of the information Christanto displays has been confirmed on the same Coinbase website.

Coinbase KYC Requirements for Buying and Selling Cryptocurrencies/Source: Mira Christanto. Heavy Criticism on the Internet

Christanto is not alone in criticizing Coinbase’s new KYC. On Twitter, some users shared their dissatisfaction with the new process and classified it as overkill because it can take up to three days to complete in minutes.

One user claimed that Coinbase, one of the publicly traded exchanges, caused the retail business to be affected by FOMO (fear of missing out), resulting in new accounts being created due to current KYC requirements.

Another exchange questioned the exchange, saying it is “the most irresponsible KYC exchange on the planet and either does not use load balancing servers or deliberately prevents people from liquidating their profits.”

Another person went further and said, “KYC is evil and should be avoided,” stating that centralized exchanges such as Coinbase, Binance, and Kraken “will get hacked or take over data at any time.”

Coinbase’s major moves

According to Twitter’s Whale Alert monitor report, a large number of bitcoins were transferred from exchanges to other unknown wallets after the conditions under which Coinbase could continue to operate went viral.

For example, 5,500 BTC or 347,122,129 USD transferred from Coinbase to an unregistered wallet this Friday at 5pm UTC.

In another move, 938 Bitcoins or 58,368,151 USD were transferred from the wallet to Binance. Another 415 BTC, or just over $25 million, was transferred from Coinbase to an unknown wallet.

Another 1,699 BTC (US$103,273,476) was sent today from Coinbase to an unknown wallet as another proof of migration to another exchange that doesn’t have many KYC requests.

Coinbase asks for your name, date of birth, nationality, gender, utility bills and other documents/sources: Coinbase. Beware of hackers

Coinbase’s KYC update, which provides sensitive information to the company, could be a double-edged sword, especially considering the hacking history reported by the exchange.

In fact, last time Coinbase was attacked by a failed authentication system earlier this month, according to the report, Coinbase has collected cryptocurrencies with at least 6,000 users.

Although the company said it will replenish the stolen funds, it is true that the security of the exchange is weak, so along with the KYC update, the company’s defenses against these attacks should also be strengthened.

Information source: Compiled by CRIPTONOTICIAS by 0x information. Copyright belongs to the author Jesús Herrera, all reproductions are prohibited.


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