Why CoinJar Requires Identity Verification

Why does CoinJar want information when I sign up? Here's the answer you have been seeking.

May 27, 2025

Key Takeaways

Why does CoinJar want personal information when people sign up to the platform?
Sometimes CoinJar needs more information than a bank needs.
Here are the reasons why this information is important.

At CoinJar, we prioritise your safety and trust by maintaining a secure and compliant platform. Our commitment to regulatory standards protects our customers, fosters confidence in cryptocurrency, and upholds the integrity of the cryptocurrency ecosystem. Here’s how it works.

Why Does CoinJar Have These Obligations?

Across the world, we comply with local Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) legislation.

Compliance with the Money Laundering Regulations helps to identify and prevent those that would use crypto to conduct illegal activities such as terrorism financing, and money laundering from crimes such as fraud, drug trafficking, and modern slavery; improving the safety of CoinJar customers and the community. To meet these standards, CoinJar is required to:

-Verify customer identities (Know Your Customer or KYC)

-Collect information on the purpose of accounts and transaction details, including recipients, senders, and reasons (also known as Customer Due Diligence or CDD)

-Conduct enhanced verification for higher-risk customers (Enhanced Customer Due Diligence or ECDD)

-Monitor transactions for unusual or suspicious activity (Transaction and Account Monitoring). -Screen customers and transactions to prevent CoinJar being used to breach sanctions.

Why Does CoinJar Request More Information Than My Bank?

The risks in cryptocurrency differ from those in traditional banking. Banks track transactions through regulated payment systems with established oversight and clear identifiers like account numbers; while cryptocurrencies offer pseudo-anonymity and instant global transfers, making it harder to track the custodians of illicit funds.

To address these challenges, CoinJar conducts thorough due diligence from the moment you create your account. This proactive approach strengthens our defenses against misuse and enhances platform security, adapting to the decentralised nature of cryptocurrency.

CoinJar in the United Kingdom

CoinJar UK Limited is registered with the Financial Conduct Authority (FCA) as a Cryptoasset Exchange Provider and Custodian Wallet Provider under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, as amended (Firm Reference No. 928767).

In the UK, we adhere to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, known as the MLRs. These regulations require similar measures to those in Australia to prevent financial crimes.

Further details on the MLRs can be found on the FCA’s website. Our UK operations align with these requirements to ensure a secure and compliant platform for our customers.

What Happens When CoinJar Requests More Information?

When we ask for additional information, it’s to help protect you from financial crime and ensure compliance with AML/CTF regulations. This may involve providing:

-Details about the purpose of your account or transactions

-Information on the destination of funds or transaction recipients/senders

-Additional KYC documents (e.g., driver’s license, passport, or ID selfie) to verify identity

-Supporting documents like bank statements, payslips, or proof of funds/wealth.

We may also enquire if someone assisted with your account setup or confirm your understanding of cryptocurrency’s irreversible nature. Your cooperation helps maintain a secure and trustworthy platform.

Why Are Restrictions Applied to My Account?

Account restrictions may be applied automatically by our systems or manually by our Security Team to comply with regulations and ensure safety.

Restrictions vary, and we’ll inform you of the type where possible. For security reasons, we cannot disclose the specific criteria for restrictions. In some cases, we may not provide further details or be able to lift restrictions.

If you believe a restriction was applied incorrectly, please contact support@coinjar.com for a review.

CoinJar

CoinJar is one of the longest-running cryptocurrency exchanges in the world. Since 2013, we’ve helped hundreds of thousands of people worldwide to buy, sell and spend billions of dollars in Bitcoin, Ethereum and dozens of other cryptocurrencies.

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Standard Risk Warning: The above article is not to be read as investment, legal or tax advice and it takes no account of particular personal or market circumstances; all readers should seek independent investment advice before investing in cryptocurrencies.

The article is provided for general information and educational purposes only, no responsibility or liability is accepted for any errors of fact or omission expressed therein. Past performance is not a reliable indicator of future results. We use third party banking, safekeeping and payment providers, and the failure of any of these providers could also lead to a loss of your assets.

We recommend you obtain financial advice before making a decision to use your credit card to purchase cryptoassets or to invest in cryptoassets.

Capital Gains Tax may be payable on profits.

CoinJar's digital currency exchange services are operated in the UK by CoinJar UK Limited (company number 8905988), registered by the Financial Conduct Authority as a Cryptoasset Exchange Provider and Custodian Wallet Provider in the United Kingdom under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, as amended (Firm Reference No. 928767).

In the UK, it's legal to buy, hold, and trade crypto, however cryptocurrency is not regulated in the UK. It's vital to understand that once your money is in the crypto ecosystem, there are no rules to protect it, unlike with regular investments.

You should not expect to be protected if something goes wrong. So, if you make any crypto-related investments, you're unlikely to have recourse to the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service (FOS) if something goes wrong.

The performance of most cryptocurrency can be highly volatile, with their value dropping as quickly as it can rise. Past performance is not an indication of future results.

Remember: Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

UK residents are required to complete an assessment to show they understand the risks associated with what crypto/investment they are about to buy, in accordance with local legislation. Additionally, they must wait for a 24-hour "cooling off" period, before their account is active, due to local regulations. If you use a credit card to buy cryptocurrency, you would be putting borrowed money at a risk of loss.