Coinbase CEO Brian Armstrong apologized to former Bitcoin developer Gavin Andresen following concerns over the crypto exchange’s bank statement requirements.
As of Tuesday, Andresen has received a Coinbase request for three months’ worth of financial information. He included the hashtag #invasionofprivacy in his statement.
Armstrong’s reaction? “Sorry about that!”
Coinbase Compliance and KYC, Gobbling Users’ Bank Information
With the policy apparently lifted, Andresen replied a few hours later: “Coinbase concluded they had enough information about me, case closed.”
According to Coinbase’s fine print, the company:
“…may request that you submit additional information about yourself or your business, provide relevant records, and arrange for meetings with Coinbase staff so that Coinbase may, among other things, establish the source of your wealth and source of funds for any transactions carried out in the course of your use of Coinbase Services.”
But for Andresen and many others, Coinbase’s insistence on additional personal data, notably bank history, is excessive.
Consider the political hype around cryptocurrency’s ability to circumvent sanctions.
“They are requesting confirmation of source of funds,” stated @ScottByrd. I’m not sure how to follow them. They won’t even talk to me about it.”
“I think not their fault, just trying to be cooperative… What happens if your ID isn’t adequate and they freeze your funds?”
Why is this intrusion of user privacy necessary?
“To guarantee that new and current clients are vetted and that Coinbase is compliant with financial regulations,” a spokeswoman stated.
Coinbase users unfortunately should get accustomed to it.
Always remember this mantra from @bitcoinzay, “Not your keys, not your cheese.”