Coinbase has recently given users a choice to whitelist crypto addresses and enable 2FA before sending any funds off the platform. The reason being cited by the exchange is to enhance security and reduce fraud. However, as Coinbase delays withdrawals by 48-hours many believe that it is to reduce the market bleeding and keep the liquidity of the exchange intact.
Coinbase’s new withdrawal policies
Before these policies, withdrawing crypto from Coinbase was as simple as any other platform and just needed you to enter the address and transfer. But now, the user will have to add the address to the address book for whitelisting and wait for 48-hours before being able to withdraw. It is also compulsory to enable authenticator 2-factor authentication or enable a security key.
In all this, the most important announcement is the 48-hour delay. While the exchange says that is to improve security, Kevin, a financial analyst, says that it could be to hold the liquidity up. Earlier the same option only had an 8-hour delay, but that has been increased 6 times.
Another change in policy is that users can no longer deposit on Coinbase pro from Coinbase. However, withdrawal from the pro to the basic Coinbase is still available.
How are the users reacting?
Even though it would seem that a 48-hour delay will be scorned at, most Twitter users are indifferent to this policy or are happy. And users can also disable whitelisting if they want and transfer to new addresses instantly. One of them tweeted-
This is a welcomed update for me. I was part of the T-Mobile hack last year and they got into my Coinbase account with my phone number and transferred all my money to an unknown wallet. Wasn’t Coinbases fault so they didn’t refund anything.
— David (@sonus523) June 13, 2022
Another Twitter user wrote that there is no downside to this, and since this delay is one time, it won’t be a big deal.
Inaccurate wording @realMeetKevin
There's no downside to these security measures.
I fully agree with their changes.
Everyone needs to whitelist addresses now so there's no delay.
— Gordus (@medicgordus) June 14, 2022
This is a good step
If you think about it, there are a lot of instances the accounts of users get compromised, and the culprits quickly transfer all the funds to their address. This can be easily solved by having whitelisting enabled so no one can transfer funds at least without a 48-hour delay. More importantly, the 2FA authentication basically means that a user’s account is mostly not accessible.
What are your thoughts as Coinbase delays withdrawals by 48-hours for enhanced security? And do you think this is a good step taken by them? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Billionaire Stan Druckenmiller says he prefers Bitcoin over Gold.