Trading Ethereum on Coinbase: Is It Possible?
When it comes to trading cryptocurrencies, many users turn to platforms like Coinbase and Binance, where they can easily buy, sell, and exchange various popular altcoins and cryptocurrencies. 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 said he successfully created an account on Coinbase.com and even received his first deposit, but was later told by customer support that he needed to create a bank account to sell some of his ETH.
The user was surprised by this request, as it seemed out of place given the platform’s reputation for allowing users to trade without requiring additional verification steps. He asked us to investigate and see if there were any issues with Coinbase’s system that would prevent legitimate users from selling their cryptocurrencies.
After digging deeper, we discovered that this was not an isolated incident. Similar user reports have been shared on forums and online communities, where it appears that Coinbase.com has become a de facto “bank” for Ethereum and other cryptocurrencies.
While it may seem counterintuitive to require users to register a bank account to sell their cryptocurrencies, there are a few possible explanations for this policy change:
- Regulatory Compliance
: By requiring user registration, Coinbase may be trying to comply with regulatory requirements, such as anti-money laundering (AML) and KYC (Know Your Customer) 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 trying to attract more users and increase 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 policies regarding cryptocurrency trading.
In summary, while it may seem confusing at first, the reason you need to register a bank account on Coinbase.com when selling Ethereum is due to regulatory compliance and security measures. If you are considering using Coinbase for your cryptocurrency trading, be aware of these potential requirements and explore other options if they become too restrictive or inconvenient.
Update: Since this article was written, it appears that the requirement to register a bank account 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.
