Coinbase is the world’s first digital asset platform, allowing users to sell, buy and withdraw crypto from their wallets. Since Coinbase handles large sums of money, it’s no wonder that Coinbase takes security seriously, keeping its users safe. Due to strict security measures, users may occasionally get their accounts restricted or blocked. These measures ensure that all Coinbase users are protected against fraudulent activity.
This article explains why Coinbase may restrict or block your account. We’ll also consider the =steps you can take to resolve the issue and resume normal account activity.
Why is my Coinbase Account Restricted?
Coinbase is an easy-to-use platform but can prevent users from breaking its rules and regulations. Here are some of the reasons why your account may have been restricted.
Violation of User agreements
A user is said to have violated the agreements with the platform if they no longer meet all of the account specifications listed by Coinbase. Some of the causes why an account might be restricted are:
- Being a terrorism suspect
- Breach of platform security
- Identity could not be verified
- Stolen credit card transactions
- Transfer money without an approved bank account
- Using a rooted device
Coinbase may also limit your account if it is deemed to be at high risk for crypto fraud. If Coinbase detects signs of suspicious activity, it will restrict buying and selling until it realizes what is going on. Factors such as multiple login failures or authentication from an unknown computer may be considered suspicious by the platform. Therefore, restricting your account activity is ultimately for your protection.
Victim of a Scam
Another scenario that could lead to an account restriction is if you come across as a cryptocurrency fraud scheme. The cryptocurrency market is currently unregulated, so it cannot be ruled out that illegal activities may take place on DeFi (Decentralized Finance) exchanges. You may have accidentally fallen victim to a cryptocurrency scam that caused Coinbase to restrict your account activity.
You may also have been the victim of an information breach. Although Coinbase is committed to securing users’ private data, hackers can continue to attack the platform. If your data falls into the wrong hands, Coinbase may limit your account until the situation is resolved.
Coinbase also reserves the right to terminate a user’s account if the user engages in fraudulent activity. If users are involved in questionable transactions, such as mining scams, they will lose access to trading features and the platform’s wallet. Eliminating rogue characters maintains the integrity of Coinbase and assures other traders that this is a platform they can trust.
If a transaction has been canceled or reversed, this may prevent Coinbase from processing subsequent orders. You should notify the platform’s customer service team if a recent transaction resulted in a reversal or chargeback.
An account restriction can cause anxiety, but there’s no need to panic. Once the pending transaction is settled, the funds will be deposited into your wallet or bank account.
Even though you cannot buy or sell cryptocurrencies, you will still have access to your funds, and the restriction will not affect your previous transactions. Also, you will be able to withdraw funds from your wallet to an authorized bank account. Most account restrictions are resolved within a few days, so you should resume trading soon.
How to Troubleshoot Coinbase Account Restriction
Now that we’ve explained why your Coinbase account has been restricted, let’s look at some techniques to fix it.
Violation of Coinbase User Agreement
An account that no longer meets the platform requirements is considered a violation of the Coinbase User Agreement. This may apply to:
- Your account is blocked for some time
- An account in which several transactions have been made without the authorization of the user.
- An account where your profile is not publicly available
If any of the above listed applies to you, resolving it will restore your account to unlimited use. Please complete and publish your profile if necessary. For a blocked account or unusual activity report, please visit Coinbase customer support.
Coinbase will restrict an account reported for suspicious activity. If factors such as multiple login failures or unauthorized transactions are displayed, the platform will stop any further trading attempts by the user.
This limitation is a procedure Coinbase takes to ensure that an unknown person, such as a hacker, does not log into your account. A great way to avoid unusual activity on your account is to sign up for two-factor authentication. See how to configure it.
- Log in to your account and click on your profile display picture.
- Click on “Settings,” then “Security,” and scroll down to the 2-Step Verification section.
- Click “Select” in the authenticator app option.
- Enter the one-time password (OTP) sent to your phone and press “Confirm.”
- Using the authenticator app, scan the displayed QR code.
- Type the code generated by the application on the desktop screen and press “Enable.”
You will receive an SMS notifying you that the two-factor authentication process is complete. Coinbase currently supports Google Authenticator, Microsoft Authenticator, and Duo Mobile.
Changing your password will also ensure that only you have access to your account, which should prevent additional suspicious activity reports from appearing. The following steps will guide you through modifying your Coinbase account.
- Go to “Settings” in Coinbase and select “Change Password.”
- Follow the instructions provided in your email from Coinbase.
Incomplete verification process
If you have not provided all required to Know Your Customer (KYC) documents, Coinbase will limit your account to only accept cryptocurrencies.
To resolve this issue, you must provide the required documents. These include a photo ID, proof of address, and electricity bill. Coinbase usually takes a week to verify your account.
Nnamdi Adibe is a native English writer and can write about many things. With his writing skills, he can provide well-researched content.
Nnamdi Adibe is a prolific writer at gblogo.com. He is interested in bringing you perspectives on financial liberation, fun, and investment from the rare vantage point of experience.
He provides insights on fintech, crypto and digital assets, and sustainable finance and investments and promotes a transparent, secure, and quality digital financial future for everyone.
Determination, honesty, and responsibility are important values of Nnamdi that he tries to maintain at all times.