Don't use Coinbase with a VPN

[joniboini]

That's weird to advise people on a cryptocurrency forum to not use VPNs and almost insulting them by saying it's "silly". It's not silly at all actually if you care about your privacy.

I don't think that's what he means though. The context is clearly about accessing exchanges website, not necessarily for general browsing activities. I mean if their ToS includes banning VPNs and you still use a VPN to access them the risk that your account gets banned is higher. Some VPNs do allow you to whitelist a website so if you really don't want to disconnect your VPN you can probably use that, or just use other platforms to sell/buy your crypto.

[notasimp]

If any intelligent hacker is going to be using a residential proxy, assumedly from the victim's approximate location, what is the use of flagging VPN users who are using datacenter IP addresses?

[NotATether]

If any intelligent hacker is going to be using a residential proxy, assumedly from the victim's approximate location, what is the use of flagging VPN users who are using datacenter IP addresses?

That's the thing - most hackers are lazy and will just use some regular proxy or a VPN.

[Saint-loup]

That's weird to advise people on a cryptocurrency forum to not use VPNs and almost insulting them by saying it's "silly". It's not silly at all actually if you care about your privacy.

I don't think that's what he means though. The context is clearly about accessing exchanges website, not necessarily for general browsing activities. I mean if their ToS includes banning VPNs and you still use a VPN to access them the risk that your account gets banned is higher. Some VPNs do allow you to whitelist a website so if you really don't want to disconnect your VPN you can probably use that, or just use other platforms to sell/buy your crypto.

But I don't want to do that, as all people should do IMO. In my country, like in most democratic ones, you have the right to use a VPN for whatever you need or you want. I don't want to expose to my ISP or eventually state authorities what I do with my connection and my money. And I don't want exchanges to know my IP adress if I can avoid it. Usually web services and exchanges send a security code or a link by email or SMS if your location has changed and they find it suspicious despite your cookies and your finger print or if they have doubts about the IP address used by the VPN.

[Synchronice]

Don't use them for any exchange, as a matter of fact. Nor should you use any datacenter IP.

These kinds of exchanges that are allowed in United States will make KYC/verification compulsory for all their customers. If KYC is compulsory, then why using VPN when the people identity is known already? I see no reason people should use VPN for KYC accounts if they are legitimately the owner of the documents submitted online that got them verified on the exchange. I agree with this but not for all exchanges.

You are right on your own but I think you ignore the fact that majority of users of their product are average people in crypto space. You are an advanced internet user who knows about Bitcoin, VPN, Tor, Anonymity, security and so on but the majority of internet users are very dumb. Do you remember the scam lottery popup? Millions of people got popup on websites that was telling them that they have won the lottery and they needed to fill the information to claim it. Millions of people filled the information. Yes, people are that dumb. So, Coinbase's risk model makes sense for an average user. Since hackers use VPN, Coinbase will block the account of user and the average user will survive another hack. It's a good feature for an average Joe.

How am I supposed to know whether it's a datacenter IP? My device is always connected to the VPN, whether I'm using the forum or other forum or surfing through the internet, I mean all the time. Should I be worried?

I used coinbase in the past but I don't use it anymore. Not a big fan of coinbase!

If you don't use Coinbase, then you shouldn't be worried.

[dkbit98]

That's weird to advise people on a cryptocurrency forum to not use VPNs and almost insulting them by saying it's "silly".

OK, you can do whatever you want to do, and I will repeat again that it is silly, there is no ''almost insult'' in my words, except maybe inside your head.
I will let you continue using centralized exchanges like coinbase with KYC with fake IP address and see how far you go like this.
Best of luck.

[Darker45]

So, Coinbase's risk model makes sense for an average user. Since hackers use VPN, Coinbase will block the account of user and the average user will survive another hack. It's a good feature for an average Joe.

Actually, this advice or recommendation of Shapiro's has somehow caused a backlash, and understandably so. The logic is off. Shapiro himself had to issue another statement. In it, he clarified that "Using VPN or adblocker on their own will not cause your CB account to be flagged."^[1]

So, Coinbase neither flags nor blocks accounts on the basis of VPN use. That would be silly and such isn't a feature of Coinbase. As a matter of fact, Shapiro further clarified that they actually "strongly encourage" the use of such tools for people to strengthen their privacy and security.

It's great that he realized the absurdity of his recommendation.

[1] https://x.com/scottshapiro/status/1864377071033815142

[Shishir99]

I am curious about what happens when someone accesses their account using a VPN. I also use a VPN but not always. I did not try to access any CEX account using a VPN. I assume they may ask for 2FA or other requires other type of verification before they allow access to the user account. People travel around the world, so it is not unusual to access their account from a different country.

How many users are likely to see their tweets? If this is too important, the CEX should send email to their users about it. I do not use Coinbase anymore so I don't care what are they implementing.

[albon]

Actually, this advice or recommendation of Shapiro's has somehow caused a backlash, and understandably so. The logic is off. Shapiro himself had to issue another statement. In it, he clarified that "Using VPN or adblocker on their own will not cause your CB account to be flagged."^[1]

So, Coinbase neither flags nor blocks accounts on the basis of VPN use. That would be silly and such isn't a feature of Coinbase. As a matter of fact, Shapiro further clarified that they actually "strongly encourage" the use of such tools for people to strengthen their privacy and security.

It's great that he realized the absurdity of his recommendation.

[1] https://x.com/scottshapiro/status/1864377071033815142

Many have uninstalled VPN/Adblock and have withdrawn their assets from Coinbase based on his previous tweet. It's good that he clarified this to calm exchange customers. What he mentioned about the VPN in the tweet you referred to are the challenges the platform will face in terms of a false positive result that requires them to do an additional security review to prevent fraud if a login occurs from an unknown device or a new country trying to send a large amount of assets to a new address.

Honestly, many of their customer comments did not indicate that they have good support that can quickly help in the event of these false positive results occurring, so although he mentioned that he encourages the use of tools that enhance privacy and security, the frustration faced by previous users regarding Coinbase support handling of these issues does not provide reassurance. As for me, I am not a Coinbase user, nor do I look forward to being held hostage by the controls and nonsense of any regulated CEX platforms.

[Darker45]

~snip~

Many have uninstalled VPN/Adblock and have withdrawn their assets from Coinbase based on his previous tweet. It's good that he clarified this to calm exchange customers. What he mentioned about the VPN in the tweet you referred to are the challenges the platform will face in terms of a false positive result that requires them to do an additional security review to prevent fraud if a login occurs from an unknown device or a new country trying to send a large amount of assets to a new address.

Honestly, many of their customer comments did not indicate that they have good support that can quickly help in the event of these false positive results occurring, so although he mentioned that he encourages the use of tools that enhance privacy and security, the frustration faced by previous users regarding Coinbase support handling of these issues does not provide reassurance. As for me, I am not a Coinbase user, nor do I look forward to being held hostage by the controls and nonsense of any regulated CEX platforms.

The lack of an excellent support that settles false positive right away made the backlash even more intense. If a false positive could be addressed in a matter of a few minutes via live chat, then it isn't too much of an inconvenience. The sad reality, however, is that your account could be locked and your funds frozen for days, weeks, even months. In the process, you'd even be asked to repeat doing tasks you've already done and submit documents you've already submitted.

Yeah, his earlier tweet has caused enough damage. But at least it's made clear that the mere use of VPN doesn't trigger false positive.

[lovesmayfamilis]

I can't say for sure, but can't the VPN itself harm the owner by revealing his confidential data, including stealing passwords and logins? In the same way, unscrupulous owners can add malware that will directly spy on the owner of the device. Probably for this reason, many centralized exchanges warn their customers not to use VPNs for their own safety. If we do not trust the storage of our funds on the exchange, why should we trust those who own the VPN service?

[EarnOnVictor]

Don't use them for any exchange, as a matter of fact. Nor should you use any datacenter IP.

It's a silly thing to use any centralized exchange that has mandatory KYC verification with VPN service, and it's also very risky.
You are basically exposing yourself and connecting your real identity and location with your vpn IP address.
Getting exchange account banned is also guaranteed sooner or later.

That's weird to advise people on a cryptocurrency forum to not use VPNs and almost insulting them by saying it's "silly". It's not silly at all actually if you care about your privacy. With a VPN neither your internet provider nor the administration can know what you do on internet, and websites you visit don't see your IP adress. I'm often using VPNs even when I go on CEXs and I've never got any problems.

It is easy to advocate in your way but in the end, the one wielding the power/control is supreme. That's the case with the centralised arrangements, you should either follow their dos and don'ts or leave them honourably. If you are to even follow your claims of the use of VPN as to what we support here, then you have to also adhere to the use of DEX as advised here. Many top exchanges are blatantly warning against the use of VPNs and many innocent are already victims, so why not obey or leave them to avoid later issues?

[zabzob]

I am not comfortable with services that forces users to do KYC. If there are alternatives, I would gladly use them. To this very day, I haven't done KYC in any of the CEX's using my own identity. Instead, I used my family members identity, for example my grandma, who never knew what crypto was.

isn't that technically identity theft? and is illegal the last time i checked. and we really did not need to know that, buddy... why would you share that?
are you trying to make your grandma take the fall for you? i mean, i know crypto is banned where you are from.

I wouldn't assume he's trying to make grandma take the fall. If authorities come knocking she'll have plausible deniability because she's never even heard of crypto and has no crypto-related activities to recover. It would appear like a case of identity theft committed by unknown criminals, not a family member, authorities will move on.

[Saint-loup]

There is absolutely no need to have luck, if you don't use your VPN to try to circumvent some geoblocking restrictions I don't understand why you should be afraid. Only unprofessional and dishonest exchanges would annoy you for this kind of thing. If they really don't like your IP address they will notice you about it and will let you use another one.

[Sanitough]

There is absolutely no need to have luck, if you don't use your VPN to try to circumvent a geoblocking I don't understand why you should be affraid. Only unprofessional and dishonest exchanges would annoy you for this kind of thing.

Using a VPN isn’t the main purpose here, as Coinbase is a regulated platform, and you can trade without completing KYC initially. So, if someone uses a VPN, it’s likely just for hiding their location and maintaining privacy. However, with the warning mentioned in the OP, it’s not worth the risk, especially if you have a decent amount of crypto stored on the exchange. Prioritizing security and compliance is always the smarter choice in such cases.

[Pmalek]

Using a VPN isn’t the main purpose here, as Coinbase is a regulated platform, and you can trade without completing KYC initially. So, if someone uses a VPN, it’s likely just for hiding their location and maintaining privacy.

The problem is that they don't know where you are at the moment you access the exchange through a VPN. You could be a citizen of a country from where you are allowed to use Coinbase. You could spend most of your time accessing the service from allowed locations. However, you could then travel to a restricted location, connect to a VPN, and use Coinbase's services through it. Coinbase wouldn't know where you are, and you would be breaking their terms by accessing the exchange from a banned country, but also hiding behind a VPN and claiming you aren't doing anything wrong and you are only trying to maintain your privacy.

So, the best course of action from their side is to disallow the use of VPNs altogether. And the best thing users could do is not to use Coinbase at all.