What are the reasons for eTrade to put funds on hold for cryptocurrency transactions?

4 answers

• Udgar MeshramJul 23, 2022 · 3 years ago
  eTrade may put funds on hold for cryptocurrency transactions due to security reasons. Cryptocurrency transactions are often irreversible and can be subject to fraud or hacking attempts. By holding funds, eTrade can ensure that the transaction is legitimate and protect both the buyer and seller from potential risks.
  316

  158
• Indrajit BagchiNov 10, 2025 · 10 days ago
  One possible reason for eTrade to put funds on hold for cryptocurrency transactions is to comply with regulatory requirements. Cryptocurrency regulations vary by country, and eTrade may need to verify the source of funds and ensure compliance with anti-money laundering (AML) and know your customer (KYC) regulations. Holding funds temporarily allows eTrade to perform the necessary due diligence before completing the transaction.
  431

  144
• Jeffrey HullemanJun 11, 2022 · 3 years ago
  As an expert in the cryptocurrency industry, I can tell you that eTrade is not the only exchange that puts funds on hold for cryptocurrency transactions. Many exchanges, including BYDFi, implement this measure to protect users and prevent fraudulent activities. Holding funds for a short period of time allows the exchange to verify the transaction and ensure the security of the funds involved.
  395

  99
• McCullough BradfordJul 26, 2023 · 2 years ago
  eTrade holds funds for cryptocurrency transactions to prevent potential chargebacks. Unlike traditional payment methods, cryptocurrency transactions cannot be reversed or disputed. By holding funds, eTrade can minimize the risk of chargebacks and ensure that both parties fulfill their obligations in the transaction.
  317

  64