Identification Requirements & Deposit Limits

CoinJar ID Schedule

 

Over the weekend we’ve been re-thinking our current deposit mechanisms which we have found to be unsustainable. CoinJar has now over 2,000 customers who actively trade in bitcoin. One of the chief criticisms of our business have been the low deposit limits. The $100/day limit stems from the need to decrease the incentive for scammers to use our website. This has also helped to limit our liability as we’ve only been operating for a short period of time. It’s been agreed that we should not unfairly penalise those who want to go the extra-mile to buy larger amount of bitcoin.

At the same time as CoinJar continues to grow and become a household name in Australia, we have become an increasingly larger target for unscrupulous individuals who wish to commit fraud. It’s our imperative that we now introduce identification procedures as part of our security mechanisms. This will also go a long way in protecting you, our clients, as well as the sustainability of our business. We will NEVER sell or provide your details to anyone unless there is a funds reversal or a court order. Your ID will be securely transferred over Secure Socket Layer (SSL) and stored encrypted using AES 256-bit encryption.

The ideal of totally anonymous transactions is one that CoinJar supports. We stand firmly with ideals of civil liberty, personal privacy, and the freedom to go about your own business without someone peering over your shoulder. However at this point in time, concessions have to be made. If you are uncomfortable with providing us with ID, we still have the option to do an over-the-counter cash deposit at a NAB branch. There’s a handy branch locator here.

9 Comments

  1. e

    I have verified my bank account through the pin sent to me in a transaction and have had several sucsessful coinjar transactions. Will i still need to provide id? To continue depositing from my commbank account

    1. Bank account verification and ID are two different things. The former was mainly to provide protection in case you entered the wrong bank details (you’ll be surprised to know how many people entered incorrectly), the latter was recently introduced to make sure that we actually know who you are.

  2. I have used your service and I think it is really good. However, with all of the secret government surveillance how can we be sure that you will not pass on details and they will remain private? How do I know that you will keep your word? I know that the CEO of Lavabit was honourable. Are you? Will you alert your users if you are asked to pass on details?

    Cheers,
    Cameron

    1. There’s no way to remain anonymous if you send us money via bank transfer anyway. So if you’re really worried about this, perhaps you should only make cash deposits, and identification won’t be necessary.

  3. Ryan

    I don’t like the new system, I think that the old system of not having to provide ID for small transactions should be available for transactions in the order of 1-2BTC, anything more I can understand why you’d want to collect ID (Anti money laundering and all that jazz)

    1. Gordon

      I agree. The ID process is a barrier to using CoinJar for me.

      I’d be happy to have a low limit and be able to use internet banking without ID verification.

  4. Thanks for the feedback guys! Ryan makes a good point, if you’re banking into our account that is already hardly anonymous.

    However I can understand some privacy concerns. We’ll continue to provide as many other alternatives as possible.

  5. Julie

    People are tentative enough using coinjar – why would they then hand over banking details? You have to remember that based on your track record Zhou, you could be hacked at any moment. I for one will stick to cash.

  6. kristian

    I find your text very hard to read. I’ll admit that my laptop screen isn’t the best. I think that you should use a darker font, light grey on white is giving me a headache.

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