Why Do I Need to Upload My Drivers License to Coinbase

Post past **69XR7** » Midweek May 05, 2021 4:49 pm

I've been thinking about dipping my toe into crypto and was looking for the easiest way to put a little play coin into it.

After following and reading many threads hither information technology seems like Coinbase/Coinbase Pro may be the best way for me to get started.

I created an business relationship on Coinbase, merely plant that I actually can't exercise much of annihilation until I verify my ID and for some reason the idea of giving them all this info just stopped me cold.

Am I being overly cautious? Is giving them a motion picture of my ID just inviting identity theft?

Mail service by **69XR7** » Wed May 05, 2021 7:00 pm

I've opened new accounts at Ally, Marcus & Allegiance in the past couple years and my wife has also opened accounts at Marry & Marcus. None of these required a scan of an ID and face.

Post by **JoMoney** » Wed May 05, 2021 7:37 pm

69XR7 wrote: ↑Wed May 05, 2021 7:00 pm I've opened new accounts at Ally, Marcus & Fidelity in the by couple years and my wife has also opened accounts at Ally & Marcus. None of these required a scan of an ID and face up.

Sometimes they can verify you lot other ways. If they can't, it's not uncommon fro banks to crave you lot scan/send copies to verify identity. I've had to do it with Capital 1 360 and with a strange exchange/transfer service I used to utilise. Equally others have said, the "Know Your Customer" requirement is in the banking act laws and required of any "money service business".

Post by **Jack FFR1846** » Wed May 05, 2021 7:54 pm

This isn't new. DW had to get to a Schwab part with passport to verify her identity virtually 5 years ago when opening an account. We could have sent documents but information technology was just easier to drop in.

Post past **wmvink** » Wed May 05, 2021 ten:25 pm

If you don't trust the country'due south largest crypto broker - which is listed on the NASDAQ and has a market cap of $50B - so I would say you're probably not set to get into crypto. As a 'safe' alternative you could consider buying a crypto trust like GBTC in your existing brokerage business relationship.

Post past **CardinalRule** » Thu May 06, 2021 6:58 am

wmvink wrote: ↑Wed May 05, 2021 10:25 pm If you don't trust the land'southward largest crypto banker - which is listed on the NASDAQ and has a market cap of $50B - then I would say you're probably not ready to go into crypto. As a 'safety' alternative you could consider ownership a crypto trust like GBTC in your existing brokerage business relationship.

That's a good point virtually the size and financial integrity of Coinbase. Similar the OP, I stopped at the point where the Coinbase app asked for a digital copy of my driver's license. I was worried about ID theft, and probably overthinking information technology. I take but never had to provide my driver'south license when opening other online accounts - brokerages, banks, etc. I haven't gone back to the verification process, as I was just going to play around with a small amount, more often than not for marvel and learning, but maybe I volition.

Post by **investorpeter** » Thu May 06, 2021 vii:26 am

Yes, that is beingness overly cautious. Every time you check into a hotel or rent a automobile you accept to show your ID, and they often accept a photocopy of it besides.

In my listen, the major security outcome to consider with Coinbase (or whatsoever crypto-based business) isn't ID theft, merely the lack of recourse in the event of crypto nugget loss.

Post by **Freefun** » Thu May 06, 2021 seven:26 am

This is required by law. How companies do this is up to them. That Ally didn't enquire for face up scan or DL doesn't mean they're non complying simply rather their implementation is different. I don't know of any United states of america bank that doesn't require your SS and I'g fairly certain everyone will bank check your credit (most do soft pulls).

Post by **SlowMovingInvestor** » Thu May 06, 2021 7:40 am

Freefun wrote: ↑Thu May 06, 2021 vii:26 am I don't know of any United states of america banking concern that doesn't crave your SS and I'm fairly certain everyone will bank check your credit (virtually practise soft pulls).

Not exactly credit checks. Banks typically practice a pull with ChexSystems or the like, which render information on issues related to deposit accounts such as bounced checks etc.

Requiring scans of IDs -- I do remember the occasional online bank/brokerage that asks for them. I suppose Coinbase is existence stricter considering information technology'south in a new field and wants to avoid whatsoever reputational risk.

Mail service by **Freefun** » Thu May 06, 2021 7:56 am

SlowMovingInvestor wrote: ↑Thu May 06, 2021 seven:twoscore am

Freefun wrote: ↑Thu May 06, 2021 seven:26 am I don't know of any Us banking company that doesn't crave your SS and I'grand fairly certain everyone will check your credit (virtually practice soft pulls).

Not exactly credit checks. Banks typically practise a pull with ChexSystems or the like, which render information on issues related to deposit accounts such as bounced checks etc.

Requiring scans of IDs -- I do remember the occasional online banking company/brokerage that asks for them. I suppose Coinbase is being stricter because it's in a new field and wants to avoid any reputational run a risk.

Everyone volition do a soft pull (what they're pulling is up to them).

Institutions accept gamble management policies. These policies define processes needed based on one) timing, 2) nugget blazon, three) amount, four) geography.

That most banks require SS with soft pull reflects the predominant nature of relatively moderate amounts of USD transactions. If you lot try to move large amounts of USD in domestic banks this will usually result in triggering more levels of risk management. A normal banking concern that decides to manage crypto may have more stringent risk management policies since it's a different asset type with different potential risks.

Thu May 06, 2021 8:xviii am

If you want to dip your toe with merely Bitcoin, the cash app is the simplest manner to get. Information technology's also the cheapest for small transactions.

Thu May 06, 2021 eight:34 am

Freefun wrote: ↑Thu May 06, 2021 7:56 am
That nearly banks crave SS with soft pull reflects the predominant nature of relatively moderate amounts of USD transactions. If y'all endeavour to move big amounts of USD in domestic banks this will usually result in triggering more levels of risk direction. A normal banking company that decides to manage crypto may have more stringent risk management policies since it's a different asset type with different potential risks.

Definitely. As a potential off ramp for crypto into real $, information technology's not surprising that Coinbase would have more stringent rules than a traditional banking company/brokerage.

Post past **Nate79** » Thu May 06, 2021 8:40 am

This is a actually good sign that Coinbase is doing this. Glad to hear they are taking these responsibilities seriously.

Postal service past **wmvink** » Thu May 06, 2021 8:58 am

Nate79 wrote: ↑Thu May 06, 2021 8:40 am This is a really good sign that Coinbase is doing this. Glad to hear they are taking these responsibilities seriously.

I remember they know that if they chose not practice this (i.e. chose to break anti-coin laundering laws), their stock would come crashing. It's nonetheless cheaper to implement KYC checks than to expose yourself to all the legal risk that comes with breaking Us banking laws.

Mail service past **Gadget** » Thu May 06, 2021 ix:24 am

Nate79 wrote: ↑Thu May 06, 2021 8:forty am This is a really skilful sign that Coinbase is doing this. Glad to hear they are taking these responsibilities seriously.

Every crypto commutation is doing this to comply with US laws.

I had to do the same things on Binance.the states, Voyager, Kraken, Gemini, BlockFi, etc. Binance.us fifty-fifty couldn't verify me online, and it sat there for 4 months to verify until a human could review information technology because they were and then backlogged.

Information technology amazes me that one-half the threads here still hash out all the illegal uses for crypto. I tin't imagine how you could dodge taxes or do illegal things for besides long when every exchange knows who you are with a verified identity, and the blockchain exists forever. So if you send anything from one verified wallet to any other wallet, that instantly ties your identity to that wallet. Information technology'south all just pseudo anonymous. It'southward got to be the IRSs/regulators dream.

In other words, just because average Joe couldn't rail my crypto, you meliorate believe the IRS tin can and does with help from companies similar Palantir. Or at the very least, they are setting upwards the infrastructure to. Which to about bogleheads is no issue at all. We are all virtually tax efficiency, but we all pay what is required to the IRS. Some of the people on reddit thinking they are dodging taxes are in for a rude awakening in the hereafter I bet though.

Post by **SlowMovingInvestor** » Thu May 06, 2021 9:31 am

Gadget wrote: ↑Thu May 06, 2021 9:24 am
It amazes me that half the threads here still discuss all the illegal uses for crypto. I can't imagine how you lot could dodge taxes or do illegal things for likewise long when every substitution knows who yous are with a verified identity, and the blockchain exists forever. So if you lot send anything from one verified wallet to whatsoever other wallet, that instantly ties your identity to that wallet. It's all but pseudo anonymous. It'due south got to be the IRSs/regulators dream.

In other words, only because average Joe couldn't track my crypto, you better believe the IRS can and does with help from companies similar Palantir. Or at the very to the lowest degree, they are setting upward the infrastructure to. Which to almost bogleheads is no outcome at all. We are all well-nigh tax efficiency, simply we all pay what is required to the IRS. Some of the people on reddit thinking they are dodging taxes are in for a rude awakening in the future I bet though.

The IRS issued John Doe summons to some exchanges recently, and has issued them to CoinBase in the past. [ A John Doe summons is a request for bulk data on a big unknown set of users. ]. But I wouldn't exist surprised in the least if there is a very significant amount of taxation underreporting going on with the decentralized exchanges, where there is no KYC/AML.

Postal service by **Gadget** » Thu May 06, 2021 ten:01 am

SlowMovingInvestor wrote: ↑Thu May 06, 2021 9:31 am

Gadget wrote: ↑Thu May 06, 2021 9:24 am
It amazes me that half the threads here still hash out all the illegal uses for crypto. I can't imagine how you lot could dodge taxes or practise illegal things for besides long when every exchange knows who y'all are with a verified identity, and the blockchain exists forever. So if you send anything from one verified wallet to any other wallet, that instantly ties your identity to that wallet. It'due south all just pseudo bearding. It's got to be the IRSs/regulators dream.

In other words, simply because average Joe couldn't track my crypto, you lot amend believe the IRS can and does with assist from companies like Palantir. Or at the very least, they are setting upward the infrastructure to. Which to nigh bogleheads is no issue at all. Nosotros are all about tax efficiency, but we all pay what is required to the IRS. Some of the people on reddit thinking they are dodging taxes are in for a rude awakening in the futurity I bet though.

The IRS issued John Doe summons to some exchanges recently, and has issued them to CoinBase in the past. [ A John Doe summons is a request for bulk information on a large unknown set of users. ]. But I wouldn't be surprised in the to the lowest degree if at that place is a very significant amount of taxation underreporting going on with the decentralized exchanges, where at that place is no KYC/AML.

I agree with this. But if you read almost the new Palantir contract with the IRS, I forget what it is chosen, I bet they can rails DeFi too at present. They know that your crypto went to a DeFi exchange, and at a minimum you created a taxable event there that must exist reported. But I bet they can as well tell what you exchanged to with a few tricks. It's not similar the blockchain data is hidden.

Post by **Cunobelinus** » Thu May 06, 2021 8:53 pm

CardinalRule wrote: ↑Thu May 06, 2021 6:58 am

wmvink wrote: ↑Wed May 05, 2021 10:25 pm If yous don't trust the country's largest crypto banker - which is listed on the NASDAQ and has a market cap of $50B - then I would say you lot're probably non prepare to get into crypto. As a 'rubber' alternative you could consider ownership a crypto trust similar GBTC in your existing brokerage account.

That's a good signal nearly the size and fiscal integrity of Coinbase. Similar the OP, I stopped at the point where the Coinbase app asked for a digital re-create of my commuter's license. I was worried well-nigh ID theft, and probably overthinking information technology. I accept simply never had to provide my driver's license when opening other online accounts - brokerages, banks, etc. I haven't gone back to the verification process, as I was just going to play around with a small amount, mostly for curiosity and learning, merely perhaps I will.

I got frustrated at that point too and gave up the second time around.

I first opened an account and thought Coinbase was going to accept a Federally-issued ID (passport) every bit a form of identification, just Coinbase afterwards terminated my account without notice after I didn't plough off my VPN prior to logging in. Apparently not providing a state-issued driver'south license was a scarlet flag and logging in from a VPN was another cherry-red flag.

I was temporarily residing in a different state from the one where my commuter's license was issued, but they blocked me from creating an account with an IP address located in the state that I was temporarily in, then I created an business relationship via a VPN to go around that odd "characteristic" of Coinbase. I'm as well not bully on sharing my driver's license info if I can avoid it. As no other fiscal institution had ever required a re-create of my driver's license, I was disinclined to requite it to Coinbase -- this was a few years ago.

I tried to debate the signal and state that I was a legitimate customer, but Coinbase refused to engage with whatever questions and refused to reinstate my account. I suppose I was on a persona non grata list at that point, because when I tried to create a second account a month or so later, Coinbase deleted it without notification later I again uploaded a passport and non a state-issued driver's license. I'm even so not sure why a state-issued driver'due south license is the fundamental to beingness able to open a cryptocurrency account -- they had a linked bank account, an address, a SSN (and credit check likewise, I suppose?), a passport. Whether or not I am licensed to drive in a item country seems to be an odd requirement for cryptocurrency. A driver's license does not evidence country residency.

Not worth the effort to me, for something that I was just going to explore.

Post by **wmvink** » Thu May 06, 2021 x:35 pm

Cunobelinus wrote: ↑Thu May 06, 2021 8:53 pm

CardinalRule wrote: ↑Thu May 06, 2021 6:58 am

wmvink wrote: ↑Midweek May 05, 2021 x:25 pm If you lot don't trust the country's largest crypto broker - which is listed on the NASDAQ and has a market cap of $50B - then I would say you're probably not ready to get into crypto. As a 'safe' alternative you could consider buying a crypto trust similar GBTC in your existing brokerage business relationship.

That's a proficient bespeak about the size and financial integrity of Coinbase. Like the OP, I stopped at the indicate where the Coinbase app asked for a digital re-create of my driver'southward license. I was worried about ID theft, and probably overthinking it. I have just never had to provide my driver's license when opening other online accounts - brokerages, banks, etc. I haven't gone back to the verification procedure, every bit I was only going to play around with a small amount, mostly for curiosity and learning, simply perhaps I will.

I got frustrated at that point too and gave up the 2d time effectually.

I first opened an account and idea Coinbase was going to accept a Federally-issued ID (passport) as a form of identification, but Coinbase afterwards terminated my account without find after I didn't plough off my VPN prior to logging in. Apparently not providing a country-issued driver's license was a red flag and logging in from a VPN was another cerise flag.

I was temporarily residing in a different state from the one where my commuter'due south license was issued, but they blocked me from creating an account with an IP accost located in the state that I was temporarily in, then I created an account via a VPN to become around that odd "feature" of Coinbase. I'm also not cracking on sharing my driver'due south license info if I can avoid it. Every bit no other financial institution had e'er required a copy of my commuter's license, I was disinclined to give it to Coinbase -- this was a few years agone.

I tried to argue the point and state that I was a legitimate client, but Coinbase refused to appoint with any questions and refused to reinstate my account. I suppose I was on a persona not grata list at that point, considering when I tried to create a second account a calendar month or so later, Coinbase deleted it without notification after I once more uploaded a passport and non a state-issued driver'due south license. I'g still not sure why a state-issued driver'south license is the key to being able to open a cryptocurrency account -- they had a linked bank account, an address, a SSN (and credit check too, I suppose?), a passport. Whether or not I am licensed to drive in a detail state seems to be an odd requirement for cryptocurrency. A commuter'south license does non prove state residency.

Non worth the effort to me, for something that I was just going to explore.

State regulations effectually crypto change every now and so. For instance, right now the regulatory framework in Hawaii makes it difficult for firms like Coinbase to comply with their laws (see here).

Of class you could debate Coinbase could but ignore the law, but they probably did the math and decided it's cheaper to refuse service to customers from that country. You may not be from Hawaii but this is just 1 example. New York has its fair share of problems likewise.

This is similar to how many foreign banks reject service to U.s. persons considering of the callous FACTA reporting requirements.

Post past **waterface2** » Thu May 06, 2021 10:54 pm

This is 100% the instance. With Hawaii and New York treating exchanges equally targets for litigation, Coinbase and other exchanges have to protect themselves from individuals who attempt to piece of work around their restrictions and open upwardly Coinbase to litigation. Passports don't show a residential address so they are tricky for verifying a state residence.

As well any use of VPN will/should event in some risk flags when used on financial services. I want all of my finance apps to detect abnormalities in login attempts. They should ensure that if my account is somehow compromised and accessed by someone in Russia they halt outgoing txs...

Post past **L. H.** » Fri May 07, 2021 12:22 am

I just set upwardly a Coinbase account this week and ran into the same event with IDs. I ended up giving the ID verification after I looked into the legitimacy. What I did Not do was to utilize Plaid to link my banking company account. Plaid has known security bug (they basically go along your bank's login information and utilize it to data mine you lot). I would only link a depository financial institution business relationship manually (which I have yet to be able to do).

I keep a split complimentary/no fee checking account with simply a pocket-sized amount (like $fifty) in information technology specifically for these sort of transfers. The bank account is set upwardly specifically to neglect to allow overdrafts and just bounce requests if there aren't sufficient funds, then that there is no gamble of big corporeality of money being drained if that data were to be misused. That might be overkill, merely lets me feel better about linking my business relationship.

On Coinbase itself: I did several training courses (had to wait a day before I became eligible to take them) and "earned" $30-something in various crypto currency, got a $v Bitcoin reward for setting up the business relationship (took several days to post, but is there at present), and co-ordinate to the tracker, the value of my "investments" has gone upwards by about $ane so far.

My research on taxes on this say that I need to leave everything in place for a total year to avoid capital gains tax so I'm just leaving it and seeing what happens for kicks-and-giggles. Wouldn't have probably done it at all except that it was free, and I was curious.

Post by **watchnerd** » Fri May 07, 2021 vi:14 am

69XR7 wrote: ↑Midweek May 05, 2021 four:49 pm I've been thinking about dipping my toe into crypto and was looking for the easiest fashion to put a niggling play money into it.

After following and reading many threads here it seems like Coinbase/Coinbase Pro may be the all-time way for me to get started.

I created an account on Coinbase, simply establish that I actually tin't exercise much of annihilation until I verify my ID and for some reason the idea of giving them all this info just stopped me cold.

Am I beingness overly cautious? Is giving them a picture of my ID just inviting identity theft?

I accept mine prepare with a TFA authenticator app.

I've had my Coinbase account for 4 years.

I don't think I was e'er asked for picture ID way back when, merely maybe I just don't remember.

Post past **orthros** » Fri May 07, 2021 10:xvi am

Not really getting the business concern around sharing your driver'southward license. Yous have to prove it tons of places these days and it's not exactly secure.

It's kind of the same give-and-take effectually your checking account routing # and checking business relationship #. It'southward on every single check you write - it's non a state secret.

I would exist 1000x more wary handing out my SS # which I believe every single financial institution requires these days. And if they're a reputable institution you will not be able to open up an account of any type without submitting it.

Post by **Crmck26** » Fri May 07, 2021 x:20 am

As a criminal defense attorney- ever buy beer or cigarettes? Not that hard for the cashier to memorize the pertinent info on your ID. More intelligent criminals have bill of fare skimmers. And the assuming are taking your mail, printing checks off your business relationship once they get that info and paying some homeless guy to go cash it. I wouldn't worry about CoinBase having a copy of your ID. At to the lowest degree you know who to sue if they accept a alienation!

Post by **SlowMovingInvestor** » Fri May 07, 2021 3:41 pm

Fifty. H. wrote: ↑Fri May 07, 2021 12:22 am I just gear up up a Coinbase account this week and ran into the aforementioned issue with IDs. I ended upwards giving the ID verification after I looked into the legitimacy. What I did NOT practise was to use Plaid to link my bank business relationship. Plaid has known security bug (they basically keep your bank'southward login information and use it to data mine you). I would only link a bank business relationship manually (which I take yet to be able to practise).

I'm not familiar with CoinBase's linking methods, only my impression was that when Plaid is used to setup the original link, information technology's only a one time link to verify the other account. One time that is done, information technology's like a manual link.

Annotation that fiscal institutions can do their ain ACH once the link is verified, so they don't need Plaid whatever more. Indeed many say they wouldn't be storing your login info when you set the link up (but I don't call up if they specifically say a tertiary party wouldn't be storing it either). All the same, if you are connecting a not financial institution, then they may be using Plaid for all ACH transfers.

But I could be wrong -- I welcome farther comments on this, even though information technology's non Coinbase specific.

Why Do I Need to Upload My Drivers License to Coinbase

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