Cryptocurrency exchange Coinbase released a statement, addressed to customers in the UK and EU, apologizing for system outages and account restrictions. The company also recognized that customer support “was not up to the expected level”.
High flow of customers
According to the public apology, the US-based crypto company has faced transaction restrictions with clients from both regions. However, Coinbase was not a direct culprit for its global problems, which emerged precisely as volatility and speed increased in the crypto markets.
Coinbase blamed the platform’s recent “ongoing market rally that has brought a significant number of new customers”.
Additionally, Coinbase claims that the regulatory environment is not helpful in this situation:
Due to changing regulatory requirements, we need to collect additional information from some of our customers, which means that their accounts will be temporarily restricted when we request this information.
However, the company admitted it could do a “better job of communicating” regulatory obligations and requirements to its customers. However, they did not provide all the details on the matter in the statement.
As an additional measure to remedy the problems, the crypto exchange has specified in detail that outstanding customer information requests are prioritized. Coinbase also sends push notifications and emails and requests additional information to remove restrictions faster.
Another change introduced by the company is the re-activation of a feature exclusive to their UK customers:
We have re-enabled a feature that allows customers in the UK to convert crypto directly to fiat currency (GBP / EUR) and transfer it to their PayPal accounts.
Coinbase background on system failures
Coinbase’s system reliability is often on the radar as Bitcoin’s (BTC) volatility increases, especially as it hits new highs.
Last weekend, the San Francisco trading platform had a “late transfer” problem. The day before, it suffered from “late transmissions and an increased error rate”.
In another case, analyst Willy Woo tweeted Monday about the Coinbase exchange in San Francisco, stating that “purchases on Coinbase will not be completed”. The problem this time came amid a major drop in Bitcoin prices.
At press time, while the platform is performing well, some customers have experienced a delay in ID verification, according to Coinbase’s status page.
What do you think of the Coinbase mea culpa? Let us know in the comments below.
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