Exchanges & BrokersNews

Coinbase Speaks On Customers’ Frozen Accounts

In the past few weeks, UK and EU customers complained of certain account restrictions that made them miss profits from BTC’s $40,000 reach. The platform prevented access to some accounts, which have been going on for more than a month. Traders voiced their dissatisfaction on social media, criticizing how the exchange kept showing ‘under review’ anytime they want to access their accounts.

Fortunately, the firm informed its customers that most accounts can now access their holdings after the exchange faced some technical issues. Apart from restoring most accounts, the trading platform explained that the overwhelming numbers of new customers, who recently joined the community, and specific requirements that have to be in place caused the delay.

Problems Coinbase platform face

Governments are bringing out stricter regulations for exchanges, making Coinbase a well-known organization, liable to follow the rules each country puts in place. The business’s new steps to follow due regulations caused the delay in account reviewing of their customers. Apart from new regulations, most exchanges reported massive new volumes due to the skyrocketing prices of cryptocurrency a few weeks ago.

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The profits attracted new traders who are overwhelming most trading platforms, leading to slow customer service response. The current market cap shows that the market is ever-evolving and that mainstream adoption is inevitable. A time where everybody explores this technology by holding some assets might be sooner than later with new changes.

One of the problems the customers faced was the frequent glitches. The technical glitch caused the platform to ask for numerous users’ requirements, such as identity cards, even with old users. Since then, things got better, with the team reassuring that the platform would do all it takes to restore their account once again.

Unfortunately, the profit loss is something traders would have to live with since some of them missed the massive Bitcoin surge. Coinbase is an exchange that allows trading of digital assets for customers, a popular choice amongst experienced traders who applaud the platform’s security.

Coinbase apologizes to customers

Apart from customers who witnessed the glitch since October, Coinbase users in Europe now face severe platform restrictions. Some could not access their accounts, while others could not make necessary transactions, which led to the public apology the platform issued to all customers. After the apology, the firm promised to find a lasting solution to their problems even with the new hurdles they face and stringent restrictions.

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Around December, many countries discussed how the anonymity of cryptocurrencies makes them tools for criminals. The sector witnessed an increment in cybercrimes such as hacking, data theft, and other acts to collect a ransom in cryptocurrency. The platform’s anonymity prevents the assets from being traced, making the government decide to create a clear regulatory framework to prevent more people from exploring the technology.

Also, numerous regions recorded an increase in money laundering, which goes undetected with the blockchain-based tech, leading to a rise in crime rates. Top players like Coinbase publicly voiced their dissatisfaction with the new restrictions and pleaded for the US government to postpone passing the FinCEN wallet regulations.

Adebayo Owotunse (Nigeria)

Adebayo Owotunse is a versatile writer who has written hundreds of crypto articles for dozens of agencies across the years. He is now also the newest addition to the Tokenhell writers team.

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