Coinbase is a digital currency exchange that allows users to buy, sell, and store various cryptocurrencies. In order to use Coinbase’s services, users are required to provide some personal information, including identification documents. There are a number of reasons why Coinbase needs this information.
One reason why Coinbase needs users’ identification documents is to comply with laws and regulations. Coinbase is a regulated financial institution, and as such, it is required to follow a number of laws and regulations that relate to money laundering, terrorism financing, and other financial crimes. In order to meet these requirements, Coinbase needs to verify the identity of its users. This helps to ensure that the platform is not used for illegal activities and that it is used in a safe and responsible manner.
Another reason why Coinbase needs users’ identification documents is to protect against fraud and identity theft. By requiring users to provide identification documents, Coinbase is able to verify that users are who they claim to be. This helps to prevent unauthorized access to accounts and can help to protect users’ financial information.
Finally, Coinbase may also need users’ identification documents in order to provide certain services or access certain features. For example, users may need to provide identification documents in order to use certain payment methods or to access higher limits on their accounts.
Overall, Coinbase needs users’ identification documents in order to comply with laws and regulations, protect against fraud and identity theft, and provide certain services or access certain features. The platform takes steps to protect users’ personal information and ensures that it is used in a secure and responsible manner.