“Coinbase account restricted” are three words that no investor wants to read. If you use the popular cryptocurrency trading platform, Coinbase, to buy, sell, and trade, you need to know when and how your account could be restricted. Restrictions can occur on any account, which is why this brief guide can help you learn how to avoid being locked out.
Read on to learn about Coinbase account restrictions. To continue diversifying your crypto portfolio with Coinbase’s services, you need to know how to get your account unrestricted.
What is Coinbase?
Coinbase is the world’s most popular and accessible crypto trading platform. They serve dozens of coin networks, including Bitcoin, Ethereum, Litecoin, and Tezos. Their simple user interface, multiple wallets, upgraded Coinbase Pro accounts, custody program, and referrals system make Coinbase one of the best platforms for diversifying crypto investments.
Coinbase Account Restricted
Despite its user-friendly systems, Coinbase restricts users if they violate its user agreement. If this happens, traders may not be able to buy or sell from their accounts. How can this happen?
The main way that a Coinbase account can become restricted is if Coinbase considers an account to be at high risk of crypto fraud. This includes mining scams as well as information hacks. If this happens, Coinbase may restrict the account and prevent buying and selling on that account. Even if you’re restricted, however, you can still withdraw your digital currency from an authorized bank account.
Beyond account restriction, Coinbase also reserves the right to close an investor’s accounts. If the user engages in fraudulent activity themselves, including mining scams, they lose access not only to the trading features but to the wallet as well. You can withdraw the currency and clear the balances, but you can’t do anything else with the account.
Account freezes would only happen if a court order or legal mandate required Coinbase to lock your account and freeze your assets. In cryptocurrency, the OFAC might do this for high-profile individuals who violate their codes. However, this is not likely something you need to worry about.
You may worry about pending trades on Coinbase if an account restriction pops up, but you can breathe easy. Account restrictions don’t cancel your previous trades. When the trade clears, the funds will become available in your Coinbase or Coinbase Pro digital wallet. Even if your account shows a restriction that prevents you from making further trades, you can still convert the currency and withdraw it from your wallet or an accredited bank.
The Takeaway for Investors
“Coinbase account restricted” can appear on your account when you least expect it. Coinbase prides itself on a user-friendly interface and robust trading features. However, they reserve the right to restrict accounts that violate their user agreements, or when required to by law.
If you trade safely and legally, you probably won’t have trouble with a locked or frozen account. However, your account may be deemed susceptible to crypto fraud, which can cause an account restriction that you need to take care of. Coinbase prides itself on safety and wants to keep its traders in the know about their account status.