Coinbase Ethereum Trade: Can it be done?
As for the cryptocurrency trade, many users come to platforms like Coinbase and Binance, where they can easily buy, sell and trade various altco and popular coins. However, one user reported a disappointing experience when trying to sell some of their Ethereum (ETH) to Coinbase.com.
The user who wished to remain anonymous turned to us by email, describing his problems with the process in detail. They stated that they had successfully registered at the expense of coinbase.com and even received their first deposit, but were then said through customer support that they need to register a bank account to sell part of their ETH.
The user was amazed at this request as it looked out of place, given the reputation of the platform that it allows users to trade without requiring additional steps to check. They asked us to explore and see if there were problems with the Coinbase system that would prevent legal users from selling their coins.
After digging deeper, we found that this was not an isolated incident. Such consumer reports are shared in online forums and communities, where Coinbase.com seems to have become a factual “bank” for Ethereum and other cryptocurrencies.
Although it may seem counter -intuitive to require consumers to register a bank account to sell their coins, there are several possible explanations for this change in policy:
- Regulatory compliance
: Required user registration, Coinbase may try to comply with regulatory requirements, such as money laundering regulations (AML) and knowledge-client regulations (KYC).
- Security measures : Coinbase may believe that allowing consumers to register banks may increase the risk of money laundering or other malicious activities on its platform.
- Expanding the platform
: By expanding its services to include registration of bank accounts, Coinbase is probably trying to attract more users and increase its common user base.
Although this change in policy may be disappointing to some users, it is worth noting that Coinbase has not officially announced any plans to change its cryptocurrency policy.
In summary, although at first it may seem confusing, the reason why you need to register a bank account at Coinbase.com when selling Ethereum is due to measures to comply with regulatory regulations and security. If you are considering using Coinbase for your cryptocurrencies, keep in mind these potential requirements and study other options if they become too restrictive or uncomfortable.
Update: Since writing this article, it seems that the requirement to register a bank account has been removed from coinbase.com. However, consumers still have to be cautious about trading the platform, as some services may have changed their policies in response to regulatory changes.
