Trade Ethereum on Coinbase: Is It Possible?
When it comes to cryptocurrency trading, many users flock to platforms like Coinbase and Binance where they can easily buy, sell, and trade various altcoins and popular coins. However, one user reported a frustrating experience when he tried to sell some of his Ethereum (ETH) on Coinbase.com.
The user, who wishes to remain anonymous, contacted us via email, detailing his issues with the process. He stated that he successfully registered an account on Coinbase.com and even received his first deposit, but was then informed by customer support that he would need to register a bank account in order to sell some of his ETH.
The user was surprised by this request, as it seemed out of place considering the platform’s reputation for allowing users to trade without having to go through any additional verification steps. He asked us to investigate and see if there were any issues with the Coinbase system that would prevent legitimate users from selling their coins.
Upon further investigation, we discovered that this is not an isolated incident. Similar user reports have been shared on online forums and communities, where it appears that Coinbase.com has become a de facto “bank” for Ethereum and other cryptocurrencies.
While requiring users to register a bank account in order to sell their coins may seem counterintuitive, there are a few possible explanations for this policy change:
Regulatory Compliance: By requiring user registration, Coinbase may be attempting to comply with regulatory requirements such as Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations.
Security Measures: Coinbase may believe that allowing users to register banks could increase the risk of money laundering or other malicious activity on its platform.
Platform Expansion: By expanding its services to include bank account registration, Coinbase is likely attempting to attract more users and grow its overall user base.
While this policy change may be frustrating for some users, it is worth noting that Coinbase has not officially announced any plans to change its policy regarding cryptocurrency trading.
In summary, while it may seem confusing at first, the reason you are required to register a bank account with Coinbase.com when selling Ethereum is for regulatory compliance and security reasons. If you are considering using Coinbase for cryptocurrency trading, be aware of these potential requirements and consider other options if they become too restrictive or inconvenient.
Update:
Since this article was written, it appears that the bank account registration requirement has been removed from Coinbase.com. However, users should still exercise caution when trading on the platform, as some services may have changed their policies in response to regulatory changes.