Coinbase
Website: https://www.coinbase.com/
Coinbase exchange is a platform that allows you to buy, sell, and manage over 200 cryptocurrencies with low fees and high security. You can also earn rewards, explore DeFi, NFTs, and more with Coinbase. Coinbase exchange is trusted by over 108 million people and businesses worldwide. Coinbase exchange also offers advanced trading tools, direct access to order placement and market data via APIs, and an accessible futures market via Coinbase Derivatives.
Coinbase crypto exchange is a secure online platform for buying, selling, transferring, and storing cryptocurrency. Coinbase exchange supports several cryptocurrencies and trading pairs, such as BTC/USD, ETH/USD, LTC/USD, and more. You can view the available trading pairs by signing in to your account or downloading the latest list from their website.
Coinbase exchange is committed to providing high security for its users and their funds.
- Coinbase stores 98% of customer funds offline in cold storage, distributes geographically redundant backup keys, and uses encryption and multi-factor authentication for online storage.
- Coinbase also has a Secure Asset Fund for Users (SAFU), which sets aside 10% of all trading fees to protect user funds in case of a security breach. Additionally, Coinbase complies with various regulatory and compliance standards, such as KYC, AML, and GDPR.
Coinbase futures exchange charges fees for different types of transactions, such as buying and selling crypto, converting crypto to crypto, sending crypto to another wallet or platform, receiving crypto from another wallet or platform, and withdrawing cash from your account.
Coinbase is one of the most liquid regulated crypto spot exchanges in the world. It charges fees for buying and selling cryptocurrencies, which vary depending on the payment method, the amount of crypto, the location of the user, and the market conditions. The fees range from 0.5% to 3.99% of the total transaction amount. Coinbase also uses a maker-taker fee model for its exchange platform, which means that orders that provide liquidity (maker orders) are charged lower fees than orders that take liquidity (taker orders). The maker fees range from 0% to 0.4%, while the taker fees range from 0.05% to 0.6%, depending on the trading volume.
Coinbase charges fees for depositing and withdrawing fiat currency, which vary depending on the payment method and the currency. For example, ACH deposits and withdrawals are free, while wire transfers in USD cost $10 for deposits and $25 for withdrawals. SEPA transfers in EUR cost €0.15 for both deposits and withdrawals. SWIFT transfers in GBP are free for deposits and £1 for withdrawals.
Coinbase also charges miner fees for sending and receiving cryptocurrencies, which are paid to the network of miners that process transactions on the blockchain. The miner fees vary depending on the network congestion and the size of the transaction. Coinbase estimates the miner fees based on current network conditions and automatically includes them in each transaction.
Coinbase exchange also offers various cryptocurrency products, such as:
Coinbase Card allows you to spend your crypto anywhere Visa is accepted.
Coinbase Earn lets you earn crypto by learning about different projects.
Coinbase Wallet is the easiest and safest way to view and collect NFTs and DeFi.
Coinbase Prime and Derivatives provide advanced trading tools and futures markets for institutional investors.
- Coinbase supports more than 200 coins and several fiat currencies, giving you a wide choice of digital assets to trade.
- Coinbase has a simple and user-friendly interface and a mobile app that make it easy to access and use the platform.
- Coinbase offers educational content and resources that help you learn more about crypto and earn free crypto by completing modules.
- Coinbase has high security standards and stores most of its customer funds in cold storage, meaning offline devices that are protected from hackers.
- Coinbase offers additional features and services such as staking, interest, rewards, debit card, and advanced trading tools.
- Coinbase has a complex fee structure that varies depending on the type of transaction, payment method, and location.
- Coinbase has high fees for some transactions, especially for simple trades and debit card purchases.
- Coinbase has limited staking and interest opportunities compared to some other platforms that offer higher returns for holding certain coins.
- Coinbase has faced regulatory issues and investigations in some countries, such as Germany, Japan, and the UK.
- Coinbase may not be suitable for advanced traders who want more features and options such as margin, futures, options, or leveraged tokens.
Coinbase is a regulated entity that complies with various laws and regulations in the jurisdictions where it operates. Some of the details about Coinbase’s regulation are:
In the US, Coinbase is licensed to engage in money transmission in most states and is registered as Money Services Business with FinCEN. Coinbase also obtained the BitLicense from the NY Department of Financial Services in 2017.
In the UK and Europe, Coinbase’s subsidiary CB Payments Limited is authorized by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money.
Coinbase is required to comply with the Bank Secrecy Act, which requires Coinbase to verify customer identities, maintain records of currency transactions for up to 5 years, and report certain transactions.
Coinbase is also required to comply with the USA Patriot Act, which requires Coinbase to designate a compliance officer, create procedures and controls, conduct training, and periodically review the compliance program.
Coinbase is committed to complying with sanctions laws and regulations administered by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), as well as other applicable sanctions laws and regulations in the jurisdictions in which Coinbase operates. Sanctions prohibit Coinbase from engaging in activity with designated individuals and entities, such as terrorists and narcotics traffickers, as well as some countries.
Coinbase has made significant investments and commitments to manage risks that bad actors may attempt to misuse Coinbase to facilitate money laundering or terrorist financing. Coinbase follows US and international requirements to prevent, detect, and report activity indicative of money laundering and terrorist financing.
Coinbase supports customer access and choice to purchase a variety of digital assets but seeks to exclude digital assets from platform support where the asset is known or likely to defraud or harm consumers. Coinbase analyzes assets for various compliance risks, such as sanctions risks and any association with illicit activity, as well as consumer protection considerations.
March 22, 2023, the SEC issued a Wells notice to Coinbase, indicating that the regulator intends to bring charges against the company for potential violations of U.S. securities law. The notice relates to aspects of Coinbase’s spot market, staking service Coinbase Earn, Coinbase Prime, and Coinbase Wallet. The SEC alleges that some of the crypto assets or tokens that Coinbase offers are unregistered securities.
July 21, 2022, the SEC charged a former Coinbase product manager, his brother, and his friend with insider trading. They are accused of using Coinbase to buy tokens before they were listed on the exchange, which netted them $1.5 million in illegal profits. This is the first case of its kind for crypto assets.
The NYDFS investigation was triggered by a routine examination in 2020 that revealed problems with Coinbase’s compliance program dating back to 2018. The NYDFS initially ordered Coinbase to hire an independent consultant to help overhaul its operations, but that did not fix the issues. The NYDFS then opened a formal enforcement investigation in 2021 and installed an independent monitor to oversee Coinbase’s compliance.
On January 4, 2023, Coinbase reached a $100 million settlement with the New York State Department of Financial Services (NYDFS) for significant failures in its historical compliance program. Coinbase violated the NYDFS’ virtual currency, money transmitter, transaction monitoring, and cybersecurity regulations. The settlement requires Coinbase to pay $50 million penalty to the NYDFS and to invest an additional $50 million over the next two years to enhance its compliance program pursuant to a plan approved by the NYDFS.
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