Why Does Coinbase Need My SSN?

Coinbase provides a user-friendly platform for buying and selling cryptocurrencies and many other services that make it easier for people to get into the world of cryptocurrencies.

If you’re wondering why Coinbase needs your social security number (SSN), you’re not alone. Does Coinbase Need My SSN? Yes, they need your SSN for various reasons, including tax purposes, anti-money laundering laws, and account verification. 

Does Coinbase Need My SSN?

Coinbase’s verification process is designed to prevent people from using a VPN or TOR browser to hide their location, create multiple accounts and buy cryptocurrency without having the funds necessary or taking advantage of any other loopholes.

1. Account Verification 

On Coinbase, you’ll need to verify your identity before trading. You can do this in a few ways, one of which is verifying with your Social Security number (SSN).

Coinbase will ask for your SSN if you’re based in the U.S., and the requirement is part of the Know Your Customer (KYC) policy that Coinbase has adopted for its customers.

2. Taxes 

If you’re wondering why they need your SSN, the answer is simple: tax purposes. Coinbase needs to know that you are who you say you are so they can pay their share of taxes on transactions made with their platform.

For Coinbase to provide its services to users without having to report every transaction made through its service, it must verify that users have a valid identity before giving access. This way, if someone buys Bitcoin through their platform and then uses those funds to purchase drugs online, later on, Coinbase won’t be held liable for those purchases (although many people would argue this is already happening).

3. Anti-money laundering

Coinbase needs this information because they must follow strict anti-money laundering laws that require them to verify their customers’ identities before they can start trading on their platform.

The main reason Coinbase needs your SSN is that they are required by law to collect this information from all customers who sign up for an account using their service (or any other money transmitting service). 

Law requires banks or money transmitters like PayPal to collect customer information so they could more easily identify those who might be involved in terrorist activities like money laundering or drug trafficking etc…

Is It Safe to Give Coinbase Your SSN?

One of the most common concerns people have about Coinbase is whether it’s safe to give them your Social Security number (SSN). Coinbase is a secure platform. Here’s what we can tell you: Coinbase takes your privacy seriously, and we take precautions to protect your sensitive data from hackers and other threats to its security. 

Can I Use Coinbase Without an SSN?

If you want to use Coinbase, you must provide your Social Security number. This is because Coinbase is a regulated financial institution, so they need your SSN to verify your identity and ensure that you’re not doing anything illegal with their services. An SSN is not required to open a Coinbase account, but it is necessary if you want to use Coinbase’s services.