Quote from: ResistantLaw on March 01, 2017, 06:47:34 PM

Coinbase is very good about complying with the law. Maybe it's because they have to, I don't know, but do you guys really think they would add Monero? Just thought they would be kinda against the anonymity.

That being said, I remember someone mentioned about how if they added Monero, it would actually be easier for Coinbase or whoever, because if someone were to come ask questions, all they can say is "I don't know where it came from or where it went".

I don't know, what are you guy's opinions?

Would be really sad to see them add Dash because of some hype. I'm sure they would do more research on this stuff. Unless they get paid or something.

They could handle the KYC aspect of Monero coming into Coinbase the same way they do for cash and bitcoin currently, and the same way banks do. I.e. ask the owner to disclose how they acquired them, source of funds, etc.

Buying and selling within the Coinbase ecosystem also should not be different from bitcoin.

The issue is the ability to send Monero anonymously. Currently, it is pretty clear that Coinbase tracks at least the first transaction out of their system for use on darkmarkets, gambling etc., and have closed accounts based on this. They may also track multiple hops.

Obviously, they can't do this for Monero. So the issue is to what extent their counsel has decided being ableto track the blockchain is an integral part of KYC / AML for crypto, or just something you have to do if its possible (i.e. not doing it would be seen as willful ignorance.)

Now, clearly banks have gotten comfortable with KYC / AML for cash where there is nothing to track once it leaves the bank. They monitor patterns, report large amounts and repeated transactions that may look like structuring, and ask customers for the reason / destination for large transactions. So Coinbase could theoretically do the same for Monero.

But given their past actions, and the pending IRS subpoena, I think they will err on the side of caution for now. It would be too easy for the IRS lawyers to tell the judge "they just came up with a new way of letting their customers hide their funds."

I think the lagging price and total market cap is also an issue. The fact they've only added ethereum so far, when it been near a $1 billion market cap for some time suggests they have a pretty high threshold for market acceptance.