Compliance and Personal Information Protection
Lately there has been lot of queries about why Coinbase Exchange occasionally reviews specific accounts and requests for more detailed personal information about the account holders. To be precise, Coinbase Exchange does this to meet regulatory obligations.
Let’s go in a bit deep to understand our Compliance and Personal information policy:
Coinbase Exchange strives to be the most trusted platform for buying, selling, and exchanging Digital Currencies Assets. Trust is the best way to help more retail investors participate in the cryptocurrency markets and aid in increasing economic freedom around the globe.
Earning and maintaining trust requires Coinbase Exchange to ensure the integrity of all transactions supported by its exchange platform. And an important part of doing that is abiding by relevant laws and regulations. Coinbase exchange has always believed that for cryptocurrency to gain the legitimacy needed for mainstream adoption, compliance can’t be an afterthought — it is core to the way it functions.
Also Read: What Is Coinbase? | How To Use Coinbase Account
In practice, this means abiding by laws and regulations in different jurisdictions, some of which are more stringent and different than others.
Cryptocurrency is a highly regulated market, with various parts of it overseen by many different federal regulatory bodies, individual states and others — and that is just in the United States. If the Coinbase exchange wants to offer its services in other nations, it will also have to comply with that nation is laws and regulations. In some cases, this includes the Travel Rule, which requires companies like Coinbase exchange to submit information about the participants in cryptocurrency transactions under certain circumstances.
In future, the advantages of web3.0 may allow people to create and own centralized identities, sharing much less data with third parties and keeping that info more secure. Coinbase Exchange is relying on the advances in digital identity which may move it away from reliance on traditional forms of identification, like driver’s licenses and other documents. But for now, crypto companies like Coinbase exchange are required to follow existing laws and regulations, some of which have been on the books ever since before the Internet even existed.
Also Read: U.S. Charges Ex-Coinbase Manager In First Crypto Insider Trading Case
This means Coinbase Exchange has to ask its customers for basic personal information about themselves and their enterprises. Sometimes, and for a very small percentage of its customer base, it needs much more detailed information. This helps Coinbase exchange to comply with “Know Your Customer (KYC)” regulations and keep Coinbase exchange and the cryptocurrency economy safe. No matter what, Coinbase exchange is committed to protecting its customers privacy and providing a smooth and intuitive customer support and experience.
As part of its ongoing efforts to keep its customer is info safe, Coinbase exchange has also organized a coalition to help other companies comply with global regulations, following industry leading safeguards to protect customer is privacy and security. To join this coalition, and receive Travel Rule information, all participants must meet anti-money laundering, security, and privacy requirements.
Coinbase exchange has also developed proprietary blockchain analytics capabilities to help secure the cryptocurrency economy from bad actors. And it is in ongoing discussions with policymakers globally where it is advocating for consistent and reasonable requirements that protect its customers’ privacy.
Also Read: How To Unlock A Restricted Coinbase Account?
While some within the digital asset industry have questioned the application of more traditional Know Your Customer (“KYC”) requirements in this novel space, Coinbase exchange believes that widespread adoption of cryptocurrency will depend majorly on building and maintaining the trust and integrity of the markets and the ecosystem. For cryptocurrency to succeed, public needs to be able to buy digital currency with common payment methods, and feel safe doing so. The only way that can happen is if companies like Coinbase exchange follow local laws and regulations, while participating with policymakers to guide the next generation of rulemaking in this space. Put simply, if it wants to be widely accepted, compliance can’t be optional.
That is why Coinbase exchange keeps working to be an industry leader in compliance — protecting its customers, preserving trust, and building the Cryptocurrency economy.
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