Categories: Bitcoin Entertainment

Coinbase Updates User Agreement to Access Customers’ Credit History

Click here to view original web page at

Coinbase has updated its User Agreement to allow the company, either directly or through third party intermediaries, to collect credit histories from its 1.9 million users.

The new terms in the second paragraph read as follows:

“You hereby authorize Coinbase to, directly or through third parties, (i) Make inquiries we consider necessary to verify your identity and/or account information and (ii) request and obtain any consumer report, credit report or similar information relating to you and take action we reasonably deem necessary and to take any action we reasonably deem necessary based on the results of such inquiries and reports…”

Meanwhile in the preceding paragraph, Coinbase had informed its users that if they do not agree with these terms, or any subsequent changes, they will not be allowed to access any Coinbase services and must cancel “free of charge in the manner set forth below.”

Compliance or Commercialism?

Coinbase was recently accused of tracking how its users spend bitcoin purchased on the website. One user´s account was closed after he used his coins to buy cannabis seeds and another was closed because he bought coins on Coinbase and apparently sold them on Localbitcoins. While the use of coins to purchase such seeds could be questionable from a legal standpoint, selling your coins on another website is certainly not.

The California based company defended itself by claiming that these steps were necessary if they wanted to remain in compliance with regulations. Of course, these regulations do require companies to verify identities (Know your Customer) and monitor for possible criminal activity such as drug purchases and money laundering. But do these regulations require a company to pry into a customer’s credit history?

CoinTelegraph spoke via telephone today with Coinbase CEO, Brian Armstrong, on the need to verify its customers’ credit history:

“Regulations require us to verify the identity of our customers. We use a number of methods to accomplish this, such as requiring identification and addresses and in many cases rely on third parties for verification. Because some of these third parties include credit history checks as part of their process we changed our user agreement to inform our customers of this possibility so that we could maintain transparency with them.”

Armstrong wanted to make it clear that user privacy was important to Coinbase, but if the company was going to be able to provide customers the ability to move between Bitcoin and their banks, regulations must be complied with fully.

The company does accept verified credit cards and recently began allowing instant use of Bitcoin through its “USD Wallet”, which allows users with a US bank account to do an instant ACH bank transfer.

Access Customers’ Credit History

Coinbase Users Not Happy

Expectedly, Coinbase users are not happy with the new policy. One longtime customer, BitttBurger, said in a recent Reddit post:

“I've been with Coinbase literally since day one. Love their service. Love the site. And I'm the last guy to care about regulations or rules or authority. But I'm not comfortable with them running my credit report. So I guess I have to cancel.

“As a side note, the URL provided to cancel doesn't work. Redirects back to the Agreement. Guess I'm stuck.”

Another user, jimmajamma, made a much more interesting point: Most of us pay little attention to long and rambling Terms of Service and User Agreements. But he also added commented:

“I think using bitcoin is like taking the red pill. You can now see the reality of the situation. Your money, simply a physical manifestation of your labor, is not really yours to save and spend as you please. It's monitored as you make it, as you deposit it and as you spend it. I think that concept is something people need to really do more thinking about. Essentially, you are not free to transact your physical labor. I don't think the state really has that right, but that's also another story going back to 1913.”


The fact is that Coinbase is a business that seeks to work within the legacy economic system, which of course means following the rules. But Coinbase is also an enterprise that wants to take advantage of any profit potential that might become available. Anyone doing business with companies such as Coinbase should understand this and, if privacy is an issue, then it is probably better to find a less intrusive Bitcoin service provider to use as your wallet.

Did you enjoy this article? You may also be interested in reading these ones:

Do more than buy & sell bitcoins. Boost your returns using up to 8x leverage and profit in rising or falling markets. Start investing from as little as $US10. Flexible to close out your position any time

The new terms in the second paragraph read as follows: “You hereby authorize Coinbase to, directly or through third parties, (i) Make inquiries we consider necessary to verify your identity and/or account information and (ii) request and obtain any consumer report, credit report or similar information relating to you […]


Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by
Tags: carone

Recent Posts

Tom Lee: Another Big Leap for BTC Is Coming

Well, it looks like Tom Lee is back in the news, and when you really think about it, why shouldn’t… Read More

5 hours ago

Graeme Moore Publishes Bitcoin Book for Kids

A new book has emerged to teach children about bitcoin. Known as “B Is for Bitcoin,” the book shows children… Read More

5 hours ago

Key Technical Indicator Signals Bitcoin is Gearing Up for a Big Move

After inching higher yesterday, Bitcoin faced a somewhat strong rejection at just above $10,400, which has brought the cryptocurrency down… Read More

5 hours ago

Day Trading is a Great way to get Rekt, Study Finds

Making money in the financial or cryptocurrency world isn’t as easy as one might think. The volatility of Bitcoin and… Read More

5 hours ago

Bitcoin Is ‘The Most Extraordinary Bubble of Our Generation’ Says Trader

The next bitcoin bull market is only getting started, analyst claims. | Source: Shutterstock Bitcoin is up by almost 180%… Read More

5 hours ago

The Story Behind ‘B is for Bitcoin,’ an ABC Book for Kids

While writing B is for Bitcoin , an ABC children’s book about cryptocurrency, author Graeme Moore had an epiphany—children don’t… Read More

5 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More