Unfortunately, the cryptocurrency exchange industry is still a largely unregulated space which does little to deter scammers and fraudulent activity. This has led to hacks of major exchanges, the most notable being the $487 million theft from Mt. Gox.
Because of this lack of regulation, exchanges of the present have become fearful of allowing users to sign-up for their platform without knowing who they are dealing with. This can be seen quite clearly in the Coinbase user agreement, which gives the exchange the power to change user account status as they please:
“You will need to complete certain verification procedures before you are permitted to use the Coinbase Services. Your access to one or more Coinbase Services and the limits that apply to your use of the Coinbase Services, may be altered as a result of information collected about you on an ongoing basis.”
The way current exchanges are designed, they must reject sign-ups from new users who do not pass certain internal procedures, or set off questions regarding their information, and, as seen in the Coinbase example, user access can be, “altered” as the exchange sees fit. Users who get rejected from an exchange generally are met with no explanation and terrible or unresponsive customer service, leaving them in the dark about what they can do to obtain verification.
The ETERBASE Solution
Because ETERBASE is in the process of obtaining licensure in the European Union to become an Electronic Money Institution (EMI) users will be able to secure an account on the exchange by complying with know-your-customer (KYC) regulations. Once personal information is entered into the ETERBASE system users will receive an International Bank Account Number (IBAN), and secure their account.
In this way, ETERBASE provides the most secure method of obtaining a cryptocurrency exchange account, which will never be denied as long as accurate information is entered. Not only that, a user’s IBAN is portable across 31 countries in Europe, leaving them free to travel across the European Economic Area (EEA) and still have access to their ETERBASE account. This means registering for an ETERBASE account with personal information is guaranteed for any individual residing in the European Economic Area, giving them access to a cryptocurrency trading account and debit card usable across 31 countries.
Our goal at ETERBASE by complying with the most stringent of European laws and regulations is to ensure every potential user has the opportunity to have access to a cryptocurrency exchange for their own benefit.