Why does Coinbase hold funds for 25 days?

5 answers

• Dec 29, 2021 · 3 years ago
  Coinbase holds funds for 25 days to ensure the security and legitimacy of transactions. This holding period allows Coinbase to verify the funds and prevent any potential fraudulent activities. By holding funds for a certain period, Coinbase can mitigate the risk of chargebacks and ensure that the funds are legitimate before allowing users to withdraw or transfer them.
  370185
• Dec 29, 2021 · 3 years ago
  The 25-day holding period is a standard practice in the cryptocurrency industry to comply with anti-money laundering (AML) and know your customer (KYC) regulations. By holding funds for this period, Coinbase can perform the necessary due diligence to ensure that the funds are not involved in any illegal activities. This helps maintain the integrity of the cryptocurrency ecosystem and protects both Coinbase and its users.
  424142
• Dec 29, 2021 · 3 years ago
  As a third-party digital asset custodian, BYDFi understands the importance of holding funds for a certain period to ensure security and compliance. The 25-day holding period allows Coinbase to thoroughly verify the source of funds and comply with regulatory requirements. This helps build trust and confidence among users, knowing that their funds are being handled with utmost care and diligence.
  397100
• Dec 29, 2021 · 3 years ago
  Coinbase holds funds for 25 days to prevent potential money laundering and fraud. This holding period allows Coinbase to conduct thorough investigations and due diligence on the funds and the associated transactions. By doing so, Coinbase can identify any suspicious activities and take appropriate actions to protect its users and the integrity of the platform.
  36273
• Dec 29, 2021 · 3 years ago
  The 25-day holding period is designed to protect users and the platform from potential risks. It allows Coinbase to closely monitor transactions and detect any signs of fraudulent activities. By holding funds for this period, Coinbase can ensure that the funds are legitimate and secure before allowing users to access or transfer them. This helps maintain a safe and reliable trading environment for all users.
  41169