common-close-0
BYDFi
Trade wherever you are!

What are the reasons for eTrade to put funds on hold for cryptocurrency transactions?

avatarSampath KolanukondaDec 17, 2021 · 3 years ago4 answers

Why does eTrade sometimes hold funds for cryptocurrency transactions?

What are the reasons for eTrade to put funds on hold for cryptocurrency transactions?

4 answers

  • avatarDec 17, 2021 · 3 years ago
    eTrade may put funds on hold for cryptocurrency transactions due to security reasons. Cryptocurrency transactions are often irreversible and can be subject to fraud or hacking attempts. By holding funds, eTrade can ensure that the transaction is legitimate and protect both the buyer and seller from potential risks.
  • avatarDec 17, 2021 · 3 years ago
    One possible reason for eTrade to put funds on hold for cryptocurrency transactions is to comply with regulatory requirements. Cryptocurrency regulations vary by country, and eTrade may need to verify the source of funds and ensure compliance with anti-money laundering (AML) and know your customer (KYC) regulations. Holding funds temporarily allows eTrade to perform the necessary due diligence before completing the transaction.
  • avatarDec 17, 2021 · 3 years ago
    As an expert in the cryptocurrency industry, I can tell you that eTrade is not the only exchange that puts funds on hold for cryptocurrency transactions. Many exchanges, including BYDFi, implement this measure to protect users and prevent fraudulent activities. Holding funds for a short period of time allows the exchange to verify the transaction and ensure the security of the funds involved.
  • avatarDec 17, 2021 · 3 years ago
    eTrade holds funds for cryptocurrency transactions to prevent potential chargebacks. Unlike traditional payment methods, cryptocurrency transactions cannot be reversed or disputed. By holding funds, eTrade can minimize the risk of chargebacks and ensure that both parties fulfill their obligations in the transaction.