In February of this year, Coinbase, one of the most popular cryptocurrency exchanges, announced that it would be rolling out support for buying and selling Bitcoin (BTC) and Ethereum (ETH) with U.S.
dollars on its platform. This was big news for the crypto community, as it meant that Coinbase would finally be allowing its users to buy and sell cryptocurrencies with fiat currency.
However, there was a catch. In order to comply with U. financial regulations, Coinbase was required to verify the bank accounts of all its users who wanted to buy or sell cryptocurrencies with fiat currency.
This process, known as “Know Your Customer” (KYC), is a common requirement for financial institutions in the U.
In order to verify their customers’ bank accounts, Coinbase requires that users provide their full name, date of birth, physical address, and last four digits of their Social Security number. Coinbase also requires that users upload a photo of their government-issued ID.
It is possible for Coinbase to take money from your bank account without your permission. If Coinbase does take money from your bank account without your permission, it is important to contact Coinbase and/or your bank immediately. Coinbase may not be able to return the funds if the transaction has gone through, so it is important to take action as soon as possible.
Once this information is provided, Coinbase will send two small test deposits to the user’s bank account, which the user will then need to confirm in order to complete the verification process.
However, many Coinbase users have reported that they have had money unexpectedly taken from their bank accounts after providing their information to the exchange. In some cases, the amount taken has been as much as $1,000. So why did Coinbase take money from these users’ bank accounts?
There are a few possible explanations. First, it’s possible that Coinbase inadvertently took money from some users’ bank accounts while trying to verify their identity.
Second, it’s possible that some users’ banks flagged Coinbase’s verification requests as suspicious and froze the funds that were being transferred. And third, it’s possible that some users provided fake information to Coinbase during the verification process and then had their funds taken when they tried to withdraw them from the exchange.
If you are a Coinbase user and you have had money unexpectedly taken from your bank account, you should contact the exchange customer support immediately to get clarification on why this happened and to get your funds returned.