What is the purpose of having a federal ID number for Coinbase?

3 answers

• Munksgaard McKinneyApr 06, 2022 · 3 years ago
  Having a federal ID number is a requirement for Coinbase due to regulatory compliance. It helps Coinbase verify the identity of its users and prevent fraudulent activities. By collecting federal ID numbers, Coinbase can ensure that it is operating within the legal framework and adhering to anti-money laundering (AML) and know your customer (KYC) regulations. This helps create a safer and more secure environment for cryptocurrency trading.
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• Pahn_Vic18Mar 03, 2024 · a year ago
  Coinbase asks for a federal ID number to comply with government regulations. It's a way for them to verify your identity and ensure that you are not engaging in any illegal activities. By collecting this information, Coinbase can also monitor transactions and report any suspicious or fraudulent activities to the authorities. So, while it may seem like an inconvenience, it's ultimately for the safety and security of all users on the platform.
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• Ramachandran RamSep 09, 2023 · 2 years ago
  As a leading cryptocurrency exchange, Coinbase is required to collect federal ID numbers as part of its compliance with financial regulations. This is to prevent money laundering, fraud, and other illegal activities. By verifying the identity of its users, Coinbase can ensure a higher level of security and trust on its platform. So, when you provide your federal ID number to Coinbase, you can trade cryptocurrencies with peace of mind, knowing that the platform is taking steps to protect you and the integrity of the market.
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