Topic: CoinBase worse case (Read 216 times)
This is really annoying. I don't think this is because of law enforcement. Because if they need personal details even during withdrawal due to government low, then all centralized exchanges should follow and comply with the law. Most probably Coinbase would lose clients due to overacting. This isn't new though for centralized exchange, anytime they could ask for anything.
Will binance.us and other US-registered platforms do this? If true, the platform is legally obligated to do so. Otherwise, it appears to be their way of getting more money or approval from the regulators.
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I don't think this has anything to do with Coinbase being U.S based. It's just something they have to comply with since they're serving users from the Netherlands.
It's better for cryptocurrency users that value their privacy to exit every exchange site like Coinbase now because things will get worse in the future especially in the next coming halving when BTC will reach the predicted $100K price.
We need to understand that Coinbase is not the only exchange serving people from Netherlands. Why would they integrate such a centralized hardship? because they have no choice since their exchange is governed by the authority.
Will binance.us and other US-registered platforms do this? If true, the platform is legally obligated to do so. Otherwise, it appears to be their way of getting more money or approval from the regulators.
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I don't think this has anything to do with Coinbase being U.S based. It's just something they have to comply with since they're serving users from the Netherlands.
Will binance.us and other US-registered platforms do this? If true, the platform is legally obligated to do so. Otherwise, it appears to be their way of getting more money or approval from the regulators.
Since that platform is listed on the stock exchange you have to assume that all user data will be shared and they will try to verify all transactions. Obtain an updated database.
If you have problems verifying identity and checking your accounts, buy from them.
Since that platform is listed on the stock exchange you have to assume that all user data will be shared and they will try to verify all transactions. Obtain an updated database.
If you have problems verifying identity and checking your accounts, buy from them.
I knew that there was something going on when 5 Korean exchanges decided to delist LTC after the MWEB upgrade, but I didn't know the regulations were this extreme. Do you have a link where I could read more about this?
There was a thread last December:
https://bitcointalksearch.org/topic/m.58924690
This is a more in-depth description of the situation:
https://www.coinfirm.com/blog/south-korea-crypto-regulations/
I don't know-how up to date it is, I mentioned it a few months ago, so...
You have to understand that Coinbase is a legally registered company and also listed in stock market. So they can't operate in a decentralized manner. They have to follow the rules and regulations of the local markets where they have presence and supports banking transfers.
Exactly this. As I'm pretty sure even Coinbase themselves doesn't like this update because the user experience would be far worse (and take note that Coinbase is well-known because of it's noob-friendliness).
According to CoinDesk though, the travel rule is not currently mandated in the Netherlands:
But you already do this when you withdraw funds for yourself, as long as you buy coins from Coinbase somewhere down the road you will withdraw some funds, and that's the moment when you should really think of getting yourself a brand new wallet.
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That's true but at least back then, they had no way of knowing whether the withdrawal address actually belongs to you or to somebody else, not with certainty anyway.
Also, this is still one step behind South Korea, where everyone needs to have the outgoing address approved by proving is owned by licensed exchanges that are enforcing KYC.
I knew that there was something going on when 5 Korean exchanges decided to delist LTC after the MWEB upgrade, but I didn't know the regulations were this extreme. Do you have a link where I could read more about this?
Well, it's not something surprising. Actually, it's something expected. It's regulated exchange and they have to follow local laws, no matter they like it or no. And dodn't be surprised that other platforms will have to follow what Coinbase have done.
BTW, month ago they have closed my accouint just because I didn't passed their KYC. Anyway, I haven't used their service for few years, so, not big loss for me:
BTW, month ago they have closed my accouint just because I didn't passed their KYC. Anyway, I haven't used their service for few years, so, not big loss for me:
Not only that they are going to track all the off base transactions as well :
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The reason they are doing is because of the laws set out be the government which also means that they did not have any authority to not do it.
Most likely all other exchanges in the country will do this as well which also means that there would be no anonymity and people would have to live with that. Sorry that happened to you but this is how integration will work. If we do want the government to integrate themselves with Bitcoins and other cryptocurrencies we would have to follow the laws that they set.
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The reason they are doing is because of the laws set out be the government which also means that they did not have any authority to not do it.
Most likely all other exchanges in the country will do this as well which also means that there would be no anonymity and people would have to live with that. Sorry that happened to you but this is how integration will work. If we do want the government to integrate themselves with Bitcoins and other cryptocurrencies we would have to follow the laws that they set.
I know it is not something new to most privacy enthusiasts that Coinbase exchange the number 1 cunt exchange in the cryptocurrency market but they just took their centralization to the next level when they said all customers in the Netherlands will need to provide additional information (Recipient's full name, residential address, and Purpose of transfer) if the recipient is out of Coinbase exchange starting on June 27, 2022.
If they could do this to Netherland another EU may be next. Is there room for privacy in the future?
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If they could do this to Netherland another EU may be next. Is there room for privacy in the future?
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Here is a quick 2-rule crypto exchange guide for dummies:
1- Do not use coinbase.
2- Do not forget rule 1.
That's all you need to remember about coinbase. After reading my award winning guidie, If anybody out there still uses that shit exchange, he/she deserves everything and worse. No additional explanation is needed.
You have to understand that Coinbase is a legally registered company and also listed in stock market. So they can't operate in a decentralized manner. They have to follow the rules and regulations of the local markets where they have presence and supports banking transfers.
Exactly this. As I'm pretty sure even Coinbase themselves doesn't like this update because the user experience would be far worse (and take note that Coinbase is well-known because of it's noob-friendliness).
One thing's for sure though, this will probably not reflect well in their stock valuations.
You can do that but you'll basically be linking your identity to your address and giving them access to all of your future transactions since you'll have to link your Coinbase wallet:
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In certain cases, we may require you to link a Coinbase Wallet to your main Coinbase account to send crypto assets off the Coinbase platform. This allows us to verify that you control the Coinbase Wallet that is receiving the crypto assets, which is a requirement under Dutch regulations.
But you already do this when you withdraw funds for yourself, as long as you buy coins from Coinbase somewhere down the road you will withdraw some funds, and that's the moment when you should really think of getting yourself a brand new wallet.
Anyhow, coinbase regulations are far easier to bypass than banking for example, if you want to send someone funds via a bank transfers the bank already knows everything about the other guy, and the only way to avoid it will be by withdrawing cash from the ATM and giving that in person, but if you're 1000km away...
Three problems I see with this garbage
- I don't know any addresses of my friends, I would have to ask them every time, even the ones that have only a house number on a street I never bothered to memorize
- The consequences of writing down by mistake that address, you type number 56, and the street comes with only 20, would you get your account frozen after an inquiry?
- Imagine your friend sends then the coins to some known shady address, like a darknet market, same as the above as your account gets flagged?
Also, this is still one step behind South Korea, where everyone needs to have the outgoing address approved by proving is owned by licensed exchanges that are enforcing KYC.
LBC is more worse, they even need bank statements and lot of personal stuffs for high tier requirements so as long as we are using the centralized exchanges then we can't be really surprised about the privacy invasion. If the people have other choice then they can make a decision for now but about the future we have to adopt the decentralization in the trading as well.
Is this something that's easy to mitigate though as it looks it? Like if you sent the funds on to yourself and then sent them to the other person afterwards then it'll be harder to detect (it'd cost a few cents more to do that but that's probably worth it).
You can do that but you'll basically be linking your identity to your address and giving them access to all of your future transactions since you'll have to link your Coinbase wallet:
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In certain cases, we may require you to link a Coinbase Wallet to your main Coinbase account to send crypto assets off the Coinbase platform. This allows us to verify that you control the Coinbase Wallet that is receiving the crypto assets, which is a requirement under Dutch regulations.
So much for Coinbase acting like an off chain payments hub. This is going to destroy their chances at getting crypto adoption on their platform and likely give exchanges primarily outside of the US like Binance a step ahead in the race for market share.
As you start to see how regulation is going to rip Coinbase apart and crater their market cap, it's no surprise that their CEO went out and bought a ridiculous house while cashing out hundreds of millions of dollars... They know their business has peaked and now has an uphill battle in front of it.
As you start to see how regulation is going to rip Coinbase apart and crater their market cap, it's no surprise that their CEO went out and bought a ridiculous house while cashing out hundreds of millions of dollars... They know their business has peaked and now has an uphill battle in front of it.
I know it is not something new to most privacy enthusiasts that Coinbase exchange the number 1 cunt exchange in the cryptocurrency market but they just took their centralization to the next level when they said all customers in the Netherlands will need to provide additional information (Recipient's full name, residential address, and Purpose of transfer) if the recipient is out of Coinbase exchange starting on June 27, 2022.
I had to reread the post because I didn't understand the first time.
I am not that surprised because the trend is that all transactions made in cryptocurrencies are going to be perfectly KYC. That's what the powers that be want, and while you will always be able to trade P2P, anything that goes through a centralized exchange or a company is going to require KYC. Crypto casinos that don't require KYC or only from a few levels up are also in the not too distant future are going to require KYC fully.
It's not a matter of Coinbase, it's a matter of the Governments. The amount of undeclared transactions in cryptocurrencies running around is going to be greatly reduced.
You have to understand that Coinbase is a legally registered company and also listed in stock market. So they can't operate in a decentralized manner. They have to follow the rules and regulations of the local markets where they have presence and supports banking transfers.
It is like this. They want the transfers that go through exchanges CEX to be perfectly identified, that's why they ask for the name and address of the receiver. In a bank transfer they don't ask for it, but because the receiver is already perfectly identified by the receiving bank.
Is there room for privacy in the future?
Not much:
Goodbye, privacy, goodbye, it was nice while it lasted.
You have to understand that Coinbase is a legally registered company and also listed in stock market. So they can't operate in a decentralized manner. They have to follow the rules and regulations of the local markets where they have presence and supports banking transfers.
We have multiple wallets available in the market which are decentralized in nature. People are free to use it. Also Coinbase has never positioned themselves as an anonymous wallet service provider. So I believe that's fine at their end because they have to comply with the regulations. If you don't like it, use other wallets.
We have multiple wallets available in the market which are decentralized in nature. People are free to use it. Also Coinbase has never positioned themselves as an anonymous wallet service provider. So I believe that's fine at their end because they have to comply with the regulations. If you don't like it, use other wallets.
Is this something that's easy to mitigate though as it looks it? Like if you sent the funds on to yourself and then sent them to the other person afterwards then it'll be harder to detect (it'd cost a few cents more to do that but that's probably worth it).
It's probably more problematic that Coinbase doesn't have a great track record with keeping user data safe so there'll probably be more ways to bypass this too.
It's probably more problematic that Coinbase doesn't have a great track record with keeping user data safe so there'll probably be more ways to bypass this too.
Sadly it's not only the netherlands. They did something similar to customers from Canada, Japan, and Singapore not a long time ago: https://www.coindesk.com/business/2022/03/25/coinbase-to-require-recipient-information-for-crypto-transfers-from-users-in-canada-singapore-and-japan/
So at this point, I think it's safe to assume that they'll apply the same thing to other countries in the future.
So at this point, I think it's safe to assume that they'll apply the same thing to other countries in the future.
I know it is not something new to most privacy enthusiasts that Coinbase exchange the number 1 cunt exchange in the cryptocurrency market but they just took their centralization to the next level when they said all customers in the Netherlands will need to provide additional information (Recipient's full name, residential address, and Purpose of transfer) if the recipient is out of Coinbase exchange starting on June 27, 2022.
If they could do this to Netherland another EU may be next. Is there room for privacy in the future?
Source
If they could do this to Netherland another EU may be next. Is there room for privacy in the future?
Source
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