As it should be. They want to make sure nobody has hacked your account and is trying to steal your money. I love this feature, yes, check me, make sure my money is safe, thank you. And the possibility to lose funds are always there if you are doing something illegal with the government...
nah, when you use a proper broker, they ask for your details in advance before opening an account, your passport is at front on the first step. Then they don't have any problem for you to cash out. Crypto exchanges do it that way because they are dodgy as hell.
Have you been living under a rock? Have you not heard of all the hackings taking place? Do you really think no one can log in to your account and transfer all your funds with stolen information? Why would a crypto exchange be federally regulated??? Lets put our thinking caps on...
How come that you don't see news about hacking broker accounts? I mean proper brokers. As I said crypto brokers are dodgy as hell.
That's because you are dealing with FIAT currency. Which is traced and easily recovered, bad guys easily prosecuted. We're talking about crypto and how you can't reverse transactions after they are sent. Do you see the picture now? Or do I need to explain more??
I seem to remember Enron, Worldcom, Wirecard, Bernie Madoff's Investment fund (all well known frauds) all passed their audits and were known to be "in full compliance with federal regulations". I'm not saying to not leave your crypto on an exchange but don't fool yourself into thinking a company passing an audit means anything.
I believe Bernie's ponzi was already having feds close in due to the up & coming electronic audit systems which he was going to be forced to upgrade to for everything. Basically, he would have gone down the same way as our other Ponzi friend Wasendorf from PFG. He too was able to trick auditors for many years by simply making fake phony paper-statements and controlling a P.O.Box. Eventually, the feds forced him with a due-date on updating his institution with the 'electronic' auditing system. After running out of attempts to stall this out, he finally tried to commit suicide. The amount of money left wasn't enough for him to run and hide out in Cayman Islands. At least, it wouldn't have allowed him to live like a king which he had been used to.