Coinbase will require KYC in order to send/receive cryptocurrencies

[LTU_btc]

Got this email notification from Coinbase today.

Beginning soon, Coinbase will require customers to submit a verified identity document in order to send and receive cryptocurrencies.

Submitting a verified identity document will ensure no disruption to your account. Additionally, Coinbase will increase your daily buy/sell limit to 100,000 EUR.

To learn more, please visit this support article:
https://support.coinbase.com/customer/portal/articles/2956858

What are your thoughts about it? I know that many people are using Coinbase as crypto wallet, not as exchange. For example, crypto trading still aren't available in my country on Coinbase. Coinbase always been called as crypto bank, and we shouldn't be surprised about this decision. But still, require KYC in order just to send/receive crypto sound ridiculous. Do you think that many people who are using Coinbase as crypto wallet will leave this platform?

[timerland]

Got this email notification from Coinbase today.

Beginning soon, Coinbase will require customers to submit a verified identity document in order to send and receive cryptocurrencies.

Submitting a verified identity document will ensure no disruption to your account. Additionally, Coinbase will increase your daily buy/sell limit to 100,000 EUR.

To learn more, please visit this support article:
https://support.coinbase.com/customer/portal/articles/2956858

What are your thoughts about it? I know that many people are using Coinbase as crypto wallet, not as exchange. For example, crypto trading still aren't available in my country on Coinbase. Coinbase always been called as crypto bank, and we shouldn't be surprised about this decision. But still, require KYC in order just to send/receive crypto sound ridiculous. Do you think that many people who are using Coinbase as crypto wallet will leave this platform?

I don't know if coinbase is forced into doing this due to regulatory needs, or they are simply doing it on their own because most other hosted wallets still allow you to open accounts without having to verify yourself, and conduct crypto transactions.

But this is just another reason for most people not to use coinbase, in my opinion.

There were already countless reasons before. I'd rather just use an actual desktop wallet or even a wallet where you have control over your private keys like Greenaddress, instead of having to verify myself just on coinbase. The only thing that coinbase is useful for is probably its buy/sell features for credit card, but you already had to verify yourself to use that.

[LeGaulois]

It was to be expected for a long time. This what in their plan, the dream is to be a digital bank. Wait and the next step will be about getting your own IBAN and why not your Mastercard.
From a Bitcoin wallet turning into a neobank with cryptocurrency related features

[OmegaStarScream]

Just like LeGaulois said. This was expected to happen. We clearly have some companies such as Coinbase, BitPay, Xapo etc. doing their best to transform bitcoin into something that it's not. We're in a phase where it's important to educate people and make them understand what crypto is really about.

[BitHodler]

It surprises me that it took this long for them to come up with these measures. Coinbase was an open service that allowed people to deposit and withdrawal at any time without any questions asked.

I have been using Coinbase in all freedom for quite some time and that's over now. Maybe it's a good thing with how it forces people to take care of their own storage from now on.

I'm however glad that Coinbase isn't total shit like Poloniex and Bittrex. Coinbase grants people to opportunity to withdraw their digital assets before people are either kicked out or forced to verify.

Poloniex and Bittrex seize your funds and don't release them until you verify yourself.

[SFR10]

But still, require KYC in order just to send/receive crypto sound ridiculous.

It's "overkill".

Do you think that many people who are using Coinbase as crypto wallet will leave this platform?

I hope so, at least this way users will be forced to stop (finally) seeing/using it as if it's a "proper wallet (never was & never will be)"...
I'm glad they're making it easier for users to realize the true nature behind their services.

[figmentofmyass]

I'm however glad that Coinbase isn't total shit like Poloniex and Bittrex. Coinbase grants people to opportunity to withdraw their digital assets before people are either kicked out or forced to verify.

Poloniex and Bittrex seize your funds and don't release them until you verify yourself.

coinbase has its downsides but i've always appreciated that. people always had a chance to exit with their funds. xapo is also been known for pulling the "KYC now or we seize your bitcoins" scam.

But still, require KYC in order just to send/receive crypto sound ridiculous.

It's "overkill".

it is indeed. what regulations would require this level of AML protocol for crypto wallet services? i don't think there are any.

i'm almost wondering if it's a way to turn a minority of their "wallet only" customers into real customers. suppose you wanted to buy more crypto with fiat---you'd probably do it at an exchange where you've already verified, right?

[LeGaulois]

It surprises me that it took this long for them to come up with these measures. Coinbase was an open service that allowed people to deposit and withdrawal at any time without any questions asked.

I have been using Coinbase in all freedom for quite some time and that's over now. Maybe it's a good thing with how it forces people to take care of their own storage from now on.

I'm however glad that Coinbase isn't total shit like Poloniex and Bittrex. Coinbase grants people to opportunity to withdraw their digital assets before people are either kicked out or forced to verify.

Poloniex and Bittrex seize your funds and don't release them until you verify yourself.

Do you notice how this change comes just after getting the license in the UK recently? I bet Coinbase was waiting to get first the license and then set this change. And it isn't going to make people using it. It can attract even more customers to the company. But the way it's going for Coinbase in 5 years it will be a type of N26 bank. And like it happened for N26, who knows if a bank won't acquire Coinbase and its capital

[magneto]

I mean this will not necessarily affect the people who are using coinbase as an exchange since they would already be verified. But it will affect the people who are using coinbase primarily as a wallet, being unverified, and sending and receiving in cryptos only.

There are two potential motives for this. Firstly, they probably want more people to get verified so that they can use the services that they actually make money off, which is exchanging USD with BTC. Secondly, there could be regulatory concerns as well.

Expect a huge drop off of users of Coinbase, once this gets into place. But to be honest there were never the need to use coinbase as a wallet in the first place, and this could be positive in terms of getting people to actually using decentralised wallets.

[audaciousbeing]

Got this email notification from Coinbase today.

Beginning soon, Coinbase will require customers to submit a verified identity document in order to send and receive cryptocurrencies.

Submitting a verified identity document will ensure no disruption to your account. Additionally, Coinbase will increase your daily buy/sell limit to 100,000 EUR.

To learn more, please visit this support article:
https://support.coinbase.com/customer/portal/articles/2956858

What are your thoughts about it? I know that many people are using Coinbase as crypto wallet, not as exchange. For example, crypto trading still aren't available in my country on Coinbase. Coinbase always been called as crypto bank, and we shouldn't be surprised about this decision. But still, require KYC in order just to send/receive crypto sound ridiculous. Do you think that many people who are using Coinbase as crypto wallet will leave this platform?

I am even surprised that they are just coming with this policy at this time. I don't use Coinbase but I know they are one of the top exchange site out there and mostly popular in the United States. I guessed they have realised that the battle with the authority is over and they need to start going through the path of 'industry practice'. Its a good one though, at least it will reduce the element of fraud to a large extent. I had read a thread about a mail being sent to Coinbase users to invest for some ridiculous return on investment in the same Coinbase wallet address and the first thing that came to mind is how will the perpetrator intend to move the funds out where I can only just report to the customer service and since he would be know via KYC, he would be made to pay for his actions.

KYCs has come to stay which I don't have any issue with for legitimate service providers in the ecosystem but for bounties, gambling sites, I would still be critic of such platforms asking for information other than emails.

[figmentofmyass]

I mean this will not necessarily affect the people who are using coinbase as an exchange since they would already be verified. But it will affect the people who are using coinbase primarily as a wallet, being unverified, and sending and receiving in cryptos only.

There are two potential motives for this. Firstly, they probably want more people to get verified so that they can use the services that they actually make money off, which is exchanging USD with BTC. Secondly, there could be regulatory concerns as well.

Expect a huge drop off of users of Coinbase, once this gets into place. But to be honest there were never the need to use coinbase as a wallet in the first place, and this could be positive in terms of getting people to actually using decentralised wallets.

it's no major loss for coinbase. in fact, they will probably only benefit from this.

what do they gain from having a bunch of "customers" that only use them as a wallet? absolutely nothing. they are just a cost---they use coinbase's services without paying and they probably add to support complaints as well. so there will be a dropoff of users, but they're not valuable users.

on the flip side, some of these people will verify ID and may actually end up using coinbase to trade. this seems like a win-win for coinbase and makes me think maybe this isn't about regulatory concerns at all.

[carlfebz2]

I didn't received such email from coinbase and thanks for the share up.Ive been a user for 2 years using this as a wallet from transactions and as of now my account can still received funds from other sources.On when they would start out to impose restrictions?

I got worried to see this;

please be sure you upload a PDF copy of a utility bill or bank statement under your name that is no older than 3 months old.


Many of users will surely jump.

[1Referee]

it's no major loss for coinbase. in fact, they will probably only benefit from this.

what do they gain from having a bunch of "customers" that only use them as a wallet? absolutely nothing. they are just a cost---they use coinbase's services without paying and they probably add to support complaints as well. so there will be a dropoff of users, but they're not valuable users.

on the flip side, some of these people will verify ID and may actually end up using coinbase to trade. this seems like a win-win for coinbase and makes me think maybe this isn't about regulatory concerns at all.

Exactly!

There is not even a 0.1% loss for Coinbase. Coinbase profits from users who are already verified and trade crypto currencies on that platform.

If any of the non verified users leave, Coinbase won't lose one second of sleep over that. I would even like to say that they are way better off like that, especially with how all the non verified users sending funds back and forth cost Coinbase thousands of dollars per day in transaction fees. By getting rid of these people, they will book a direct gain in form of less transaction costs, and also less traffic stress on their platform from users who aren't verified.

In the end it's a gain in terms of generating more revenue, and a gain in the way that they in advance tackle future forced KYC requirements (assuming it isn't their main motive for doing right now).

[LTU_btc]

what do they gain from having a bunch of "customers" that only use them as a wallet? absolutely nothing. they are just a cost---they use coinbase's services without paying and they probably add to support complaints as well. so there will be a dropoff of users, but they're not valuable users.

on the flip side, some of these people will verify ID and may actually end up using coinbase to trade. this seems like a win-win for coinbase and makes me think maybe this isn't about regulatory concerns at all.

I think that Coinbase become popular thanks to users who used this service as wallet. But you're right that they aren't beneficial for Coinbase in the long run. Remember, in past Coinbase had free transactions and they covered all network fees. Only later they introduced fees when they already had millions of users. KYC requirements in next expected step. I expect that many people who use Coinbase as wallet will leave it, but for traders it has no impact.

[figmentofmyass]

what do they gain from having a bunch of "customers" that only use them as a wallet? absolutely nothing. they are just a cost---they use coinbase's services without paying and they probably add to support complaints as well. so there will be a dropoff of users, but they're not valuable users.

on the flip side, some of these people will verify ID and may actually end up using coinbase to trade. this seems like a win-win for coinbase and makes me think maybe this isn't about regulatory concerns at all.

I think that Coinbase become popular thanks to users who used this service as wallet. But you're right that they aren't beneficial for Coinbase in the long run. Remember, in past Coinbase had free transactions and they covered all network fees. Only later they introduced fees when they already had millions of users. KYC requirements in next expected step. I expect that many people who use Coinbase as wallet will leave it, but for traders it has no impact.

you're absolutely right. between its wallet service and its referral program in its early years, it created a massive userbase to draw on. and i think they managed to monetize that brand far better than eg blockchain.info did. honestly, my hats off to them.

now they're focusing on their core trading products which actually generate profit. they've also pretty much bowed out of the payment processing sector, which tells me they're consolidating---probably for the sake of revenue generation. they're about to list ZRX (and seemingly other altcoins/tokens too) which seems to confirm.

late to the game, but with their brand, they're in a great position to be a shitcoin trading cash cow.

[BitHodler]

Do you notice how this change comes just after getting the license in the UK recently? I bet Coinbase was waiting to get first the license and then set this change.

If so, wouldn't it make more sense to show goodwill by first implementing the KYC change and then try to talk their way into another jurisdiction? Makes more sense to me if I'm completely honest.

But the way it's going for Coinbase in 5 years it will be a type of N26 bank. And like it happened for N26, who knows if a bank won't acquire Coinbase and its capital

Could be, but that applies to any start-up or established crypto business. They are so cheap and profitable that it's almost free for financial institutions or other parties to take over business after business.

Bitmain is already doing it, but yet no one really pays attention to that while it's exactly the same. Not sure what's worse, financial institutions taking over business after business or Bitmain with its money.