Coinbase asking bizarre questions

[Kosta#]

Today I received a message from Coinbase with the following demands (and a threat, right from the start, to "disrupt" the service to my account):

...provide us with the following information within 7 days to avoid disruption of service to your account:

- Please briefly describe the primary use case for your Coinbase account
- Please describe the source of the bitcoin being deposited into your account that was not purchased through Coinbase
- Please indicate the source of funds for your purchases of bitcoin
- Please elaborate on the nature of your outgoing transfers and what services they are related to

My reply was, of course, mind your own fucking business (not that I actually sent it), but why now? My last transaction via Coinbase was more than a month ago. Looks like something is going on under the carpet. Anyone else received this?

[iluvpie60]

the internet money all these people are thinking is not traceable and anonymous is quickly catching up with reality that government is gonna fuck us all.

its inevitable, the happy go lucky days of bitcoin are coming to an end, mega corporations and big government is what is in store for the future.

[Bitcoinpro]

Would u mind posting the full contents ie senders email at coinbase, there name/title  etc

[leopard2]

wow that is scary, you should withdraw your funds before the 7 days are over ... 

[Nagle]

Get your money out now. Any time a Bitcoin company starts stalling on withdrawals, get out as fast as possible. Legitimate financial businesses ask any KYC/AML questions before you put money in.

[Kosta#]

Would u mind posting the full contents ie senders email at coinbase, there name/title etc

The sender email is support@coinbase.com

I quoted all that is essential. The rest is just a standard template bullshit about how they appreciate me being their customer and how happy they are to help me.

[Bitcoins101]

They're becoming more interested in what the coins are used for. People who have been transferring directly to and from websites like Seals with Clubs have been having issues. This is really just the U.S. government sticking their noses in Coinbase's operations. They don't want to end up like a bunch of Charlie Shrems.

Use an intermediary wallet when transferring to and from Coinbase if what you're doing isn't 100% cool under the U.S. government.

[Kosta#]

They're becoming more interested in what the coins are used for. People who have been transferring directly to and from websites like Seals with Clubs have been having issues. This is really just the U.S. government sticking their noses in Coinbase's operations. They don't want to end up like a bunch of Charlie Shrems.

Use an intermediary wallet when transferring to and from Coinbase if what you're doing isn't 100% cool under the U.S. government.

The problem is that whatever was cool yesterday may be "not cool" tomorrow. Or, is it cool if I simply ignore those questions?

[HELP.org]

This is most likely due to FinCEN Suspicious Activity Reports.  It is illegal for them to tell you if they have to file one against you.

http://www.fincen.gov/forms/files/FinCEN%20SAR%20ElectronicFilingInstructions-%20Stand%20Alone%20doc.pdf

http://www.fincen.gov/whatsnew/pdf/TheNewFinCENSAR-RecordedPresentation.pdf

Processing this stuff comes out of Coinbase's profit so I am sure it is not their choice to do it.

[gadman2]

I got the same thing when I was running a small personal exchange for very small profits and gave them the information they wanted, they told me to cease, I did, I got my account back. Simple. Coinbase is regulated by laws in the US. If you are breaking -any- of those laws then they could be held liable, you wouldn't want that kind of business going on in your business, assuming your business is trying to keep a clean record and maintain positive credibility.

[justusranvier]

http://bitcoinism.liberty.me/2014/07/08/re-enhanced-due-diligence/

[HELP.org]

http://bitcoinism.liberty.me/2014/07/08/re-enhanced-due-diligence/

Congress passed the laws, it has nothing to do with Coinbase "turning evil."   

"Frankly, Coinbase is turning into a worst kind of fascist dictatorship." - oh sure.

They are running a business and they have to do this stuff to stay in business. 

[justusranvier]

Congress passed the laws, it has nothing to do with Coinbase "turning evil."

A little bit of reading comprehension work is an investment that will pay out forever.

[HELP.org]

Congress passed the laws, it has nothing to do with Coinbase "turning evil."

A little bit of reading comprehension work is an investment that will pay out forever.

I understand what you wrote and I am saying it is ridiculous.

Coinbase is following the laws voted in by Congress and the money to do it comes out of their profits so they have incentive to do it themselves.  The other option is to go out of business and then you have no Coinbase.  They are not sitting around making plans to become an evil fascist dictator.  Call your Congressional reps and tell them to change the laws and thenCoinbase won't spend their profits hiring someone to send out the questions.

[BTCjust]

If you really scolded them, I think they will never again reply to you.
I was like this last time(about a month ago)  

[HELP.org]

If you really scolded them, I think they will never again reply to you.
I was like this last time(about a month ago)  

This stuff is so far out it drives many people away from Bitcoin so it is best they don't reply.  The early Internet had people saying advertising would never be permitted, same type of thing.  Articles like that want to project political beliefs onto a technology.

[zorke]

My reply was, of course, mind your own fucking business (not that I actually sent it), but why now? My last transaction via Coinbase was more than a month ago. Looks like something is going on under the carpet. Anyone else received this?

They are likely required to attempt to collect this kind of information when your account reaches some threshold of activity per unit of time. This is likely to comply with AML regulations and determining if you are acting as a MSB.

I would say that your response would likely result in the closure of your coinbase account (although from what I have seen is that they allow you to continue to have access to your bitcoin when then happens). 

[abercrombie]

Sounds like you were moving over $10k worth BTC.  They need to ask those questions to comply with FinCIN regulations.