As a precursor to this discussion, this subject initially doesn't seem to make sense. Why would a bitcoin exchange (assume here it's a centralized type of exchange) keep people out of crypto, or put obstacles between people using the exchange and the crypto they seek?
Previously I have generally engaged primarily in the use of decentralized exchange models which while more time consuming and currently more cumbersome, still work and do not seem to preclude anyone from using them -- though one must usually be determined in order to ensure that everything is working and secure.
As I reviewed some centralized services recently that have become increasingly popularized, it seemed to me that at least some of them actually were (whether it is the intention of their designers or not) to keep people from being able to access bitcoin and various other items they might wish to acquire through said services. I've decided for this to focus on three services -- Bitquick, Coinmama, and Robinhood. I will rate them in order of easiest to most difficult to use.
Bitquick -- Seems to be easy to get in and out of. The issue though is that (and this is probably a function of the requirements of how they operate as a business) that one has to provide all kinds of details such as one's address, identification details, and so on and so forth. Depending on the type of transfer, though, the process is either more or less cumbersome. There still seems to be a WU option, for those who wish to use it, and it does work.
Coinmama. Not hard to sign up for but their "app" leaves something to be desired, and their verification process rolls on for an eternity. Still hasn't happened. So basically, like many such services, there is a bottleneck caused there as a result of this. Not much point in checking back, since the wait could be not just weeks but months, and if there is a problem with your submittal, they are not telling you what the problem is. This one requires a bunch of identification details, selfie, the whole ball of wax, then you wait and wonder. Easy to access, but they don't get back to you at all in my experience if you ask them about verification, with the exception of automated messages telling you to "Hang in there!" (Some other services will at least respond back to you if you ask them why it is taking so long.) To their credit though, Coinmama did take some time to personally answer some questions I have about whether they support Segwit including bech32 addresses yet. Their answer.. "Yes we support Segwit, but not bech32" (... they seemed to have a tough time understanding that bech32 are in fact Segwit addresses ...) "Once the dust settles, I'm sure our Development team will look into the implementation of bech32." OK, thanks for the reply, but as we all know, the dust will never settle in crypto land.
Robinhood. Wow, what a huge disappointment! MUCH DISAPPOINT, ROBINHOOD. They sell themselves as this big wonderful solution to all the disenfranchised people of the land -- it's a fantastic marketing ploy, really -- but WOW do they disappoint.
So with Bitquick and Coinmama, I could at least understand the obstacles... Bitquick meaning they had certain information that vendors / partners they work with have to collect, Coinmama the obstacle / bottleneck seeming to be their verification, which apparently lasts forever and they really need to fix. I understand, though. I get it. But with Robinhood, wow, just totally inadequate and disappointment big time.
So first, assuming you aren't just stuck on a waitlist trying to get the app going or whatever, and that wasn't the case for me, you create a sign in from their app to their rather slick interface. They do give you opportunity to enter a PIN, 2FA, etc. so that's good, somewhat comforting at least. But that's about as far as the good goes. It demands a lot -- and I mean, a LOT -- of information from you. Also, some people won't get past the address; it isn't obvious that you need to swipe up on the screen to complete so you bounce back and forth between address screens trying to enter an address to get the thing to continue through the verification process before you realize, oh, you have to swipe up to enter the rest of the information. Their offering is limited to a few states --- this is the classic "WLTE" (we launched too early) syndrome. They ask for your social security number just to complete signup and verification - intrusive, invasive, really unnecessary imho. (I tried to see the flip side of this, though, which is that for people who are in the USA who may be purchasing stocks, which are offered on their platform, they may be required to obtain that information - I'm guessing, since I'm just not into stocks.) To fund, they seek your online signup credentials for your chosen bank (what if you don't have a bank account for crying out loud) - apart from the potential for hacking this creates, it just seems like they have totally excluded all of the unbanked right there.
That's not all though.
The signup process is relatively quick... but don't you dare try to get your money out of Robinhood if you put some in. To get anything out, fiat or crypto, you have to verify with bank statements, two forms of ID, and even more information. Yep. Good luck waiting in that line to get verification approved so you can withdraw.
In this dream they have of being equitable to everyone and not charging any fees, they have nonetheless buried something called "Robinhood Gold" in the app, where if you pay extra to them, like paying a bribe to the king in Robinhood days of olde, you will literally get your deposit moving faster. They actually say this in their Robinhood Gold details in the app. It's rather blatant. Why not just charge fees from everyone to withdraw, Robinhood? Oh, that's right: Because you aren't letting anyone withdraw UNLESS THEY PROVIDE BANK STATEMENTS. And anyone who doesn't have a bank account, doesn't even get to fund in your blessed system.
Wait, but that's not all!
To add insult to injury, a couple days after the install and initial review of Robinhood, I get this e-mail from them titled "Unfreeze Credit File - Required for Account Approval" -- with the body as follows: "Hi (..) In order to process your application, you will need to temporarily unfreeze your file with Experian.." they then went on as to the necessity of unfreezing your credit account and stated "we will not be able to verify your account until we can access this information... When you unfreeze your file, please do so for at least 15 days..."
So basically, Robinhood exists to keep the unbanked out of crypto, and to ensure that credit agencies, who we all know are wonderful and good, will have a monopolistic grip on deciding who should and shouldn't have access to crypto for such services, apparently.
My response was, in my view, rather polite given Robinhood's insanity:
"Hi, I shouldn't have to unfreeze my credit line for Robinhood.
My credit files are frozen for a reason -- because of massive fraud, theft of IDs and criminal negligence in failing to protect consumer information on the part of the major credit agencies.
Furthermore, even if I were willing to unfreeze my credit for you (and I am not), I don't have any credit, because I have actively chosen only to use the assets I earn. I use my (..portion excerpted...) and bitcoin, but I do not use credit. I behave in this way because I am responsible and I do things differently than people who think wealth can be created and managed by ratings agencies with a monopoly on credit.
In your blog post dated January 25, 2018, titled "Don't sleep," you stated in part:
"We believe that cryptocurrencies have the potential to fundamentally reorganize the way money works from the ground up, putting power previously held by financial institutions directly in the hands of the people."
Does what you say mean nothing to you? Are you going to freeze people out of your platform because we won't unlock our credit reports for you? That is hardly "putting power previously held by financial institutions directly in the hands of the people." In fact, it is doing exactly the opposite.
I have signed up for (....portion omitted, referring to a variety of things over the years...) Not once have I ever been asked for my credit report by any of these financial exchanges and organizations.
I expect you to respond with an apology (....continues on in this vein...)"
The above was my response to Robinhood's demand that I unfreeze my credit report for them, and I haven't heard back, and don't expect to. But it confirms my suspicions that many of these slick new services merely exist to suck people in, and then deny them access to bitcoin and other good things (while they hold onto whatever funds you've dumped into them). Stick with the ol' reliable exchanges that work, instead of the new and fancy ones with promises, and you'll probably do better.