Coinbase high volume compliance team

[Jim Casey]

Anybody ever get an email like this from coinbase? I think it's a good policy for them to do compliance reviews. I think I gave them a satisfactory response for my case, but I won't include that here because it might seem spammy.

An Important Message from Coinbase

Open

Case ID: xxxxxx Assigned Agent: xxxxxx
Updated: Jun xx, 2015 xx:xxPM PDT Created: Jun xx, 2015 xx:xxPM PDT
Darren
Jun xx, 2015 xx:xxPM
Hi xxxxxxx,

We’d like to thank you for trusting your business with Coinbase. We value Customers such as yourself and we are grateful to have earned your trust.

During a routine review, we noticed your account has conducted a high volume of transactions. Please know that we are required by law to periodically review high volume accounts as part of being a regulated Money Service Business.

In order to assist in this process, please provide the following information within seven (7) days to avoid disruption of service to your account:

- Briefly describe the primary use for your Coinbase account

- Describe the source of the bitcoin being deposited into your account that were not purchased through Coinbase

- Please help us understand your employment situation and/or source of income for bitcoin purchases

- Elaborate on the nature of your outgoing transfers and what service(s) they may be related to

Please know that we take privacy and security very seriously. We are happy to provide a secure Dropbox folder for you to upload your response upon request.

Thank you in advance for your cooperation regarding this sensitive matter. If you have any trouble fulfilling this request, please reply directly to this email and we will be happy to assist you.

Respectfully,

Coinbase | Compliance Team

 

[muh_roads]

- Elaborate on the nature of your outgoing transfers and what service(s) they may be related to

Did you give them the finger? I'd be curious to read your response.

Thanks for sharing. I've heard of these letters but haven't seen one.

 

[FSP-Rebel]

Did you give them the finger?

Even so, Coinbase is still the best option for US types to score coins and it's a great way/wallet to hold them for a catch and release policy/trading policy.

 

[dannno]

Just tell them you operate an ebay business selling antique furniture.

Don't tell them about the drugs inside the furniture.

 

[Dianne]

Just tell them you operate an ebay business selling antique furniture.

Don't tell them about the drugs inside the furniture.

I've noticed lately the Feds have a dragnet on everything. Did you ever stop to think the Feds could seize all btc assets from Coinbase at a moment's notice in a shtf scenario?

 

[muh_roads]

Even so, Coinbase is still the best option for US types to score coins and it's a great way/wallet to hold them for a catch and release policy/trading policy.

I agree that they are the easiest way for people to get coins or get into fiat. They will monitor where you send coins though. Luckily they can't monitor forever. Sending beyond "3 hops" is what people recommend to make the BTC fungible again. They can't accuse you of anything beyond 3 address transfers. Something to keep in mind.

I've noticed lately the Feds have a dragnet on everything. Did you ever stop to think the Feds could seize all btc assets from Coinbase at a moment's notice in a shtf scenario?

Governments are in a pickle. I'm sure special interests would love to "shut" bitcoin down. But there are a lot of special interests on our side now too thankfully. Your fears are something I worried about often in 2012. I no longer have that concern.

The US won't experience SHTF until other countries experience it first. Next up is Italy, France & Portugal. The US has too many gun owners. Makes bankers & politicians nervous. The can will be kicked down the road elsewhere for a while by continually exporting inflation through secret dealings.

How FATCA treats foreign exchange accounts is something that I still worry about though for the sake of a news event. I don't think they can raid Hong Kong exchanges. There is a special relationship there.

 

[kfarnan]

I agree that they are the easiest way for people to get coins or get into fiat. They will monitor where you send coins though. Luckily they can't monitor forever. Sending beyond "3 hops" is what people recommend to make the BTC fungible again. They can't accuse you of anything beyond 3 address transfers. Something to keep in mind.



Governments are in a pickle. I'm sure special interests would love to "shut" bitcoin down. But there are a lot of special interests on our side now too thankfully. Your fears are something I worried about often in 2012. I no longer have that concern.

The US won't experience SHTF until other countries experience it first. Next up is Italy, France & Portugal. The US has too many gun owners. Makes bankers & politicians nervous. The can will be kicked down the road elsewhere for a while by continually exporting inflation through secret dealings.

How FATCA treats foreign exchange accounts is something that I still worry about though for the sake of a news event. I don't think they can raid Hong Kong exchanges. There is a special relationship there.

Don't store coins at coinbase. Use a different service. My .02.

 

[luctor-et-emergo]

Don't store coins at coinbase. Use a different service. My .02.

I don't own any Bitcoins but I think I know enough about them to agree with you.

 

[Dianne]

Even so, Coinbase is still the best option for US types to score coins and it's a great way/wallet to hold them for a catch and release policy/trading policy.

I was curious if anyone here uses BitReserve. I find it fascinating that you can deposit btc there or U.S. dollars by wire, and trade it for swiss francs, euros, CAD dollars, gold or silver. I've read swiss francs are probably the safest currency in the world. Isn't that a good way to get out of the U.S. dollar?

If you wire U.S. dollars, there's a banking trail. If you purchase the francs with bitcoin, there is no paper trail. I have been seriously considering opening a bank account in Belize but FATCA (the new Fed law) makes that thought somewhat unattractive. BitReserve may be the perfect solution, but I'm still investigating.

 

[squarepusher]

this is standard AML/KYC questions, its required to ask these questions if you run a money changing business

 

[kpitcher]

Can't wait for the day there is no need to use cash so these sort of problems don't exist.

I've gotten asked for my ID when depositing something as small as $300 cash into a business account at the local Chase. New teller who was following the checklist of big brother activities.