Cryptocurrency exchange Coinbase issued a statement to customers in the United Kingdom and the European Union, apologizing for system outages and account restrictions. The company also recognized that their customer support “did not reach the expected level.”
Large number of new customers
According to a public apology, the US-based crypto company said that customers in both regions face transaction restrictions. However, Coinbase did not make a direct measurement of its global problems, which happened precisely when the volatility and speed of the cryptocurrency market increased.
Coinbase accused the platform of recent “continuous market rebound, attracting a large number of new customers.”
Additionally, Coinbase claims that the regulatory environment is not helpful in this case:
Changing regulatory requirements mean that we must collect more information from some customers, which means that when we request this information, their accounts are temporarily restricted.
But the company admits that they can do a better job in communicating regulatory obligations and requirements to customers. However, they did not provide complete details about the matter in the statement.
As other measures to solve the problem, crypto exchanges detailed that they will prioritize processing pending customer information requests. In addition, Coinbase will send push notifications and emails requesting additional information to remove restrictions faster.
Another change the company introduced is to re-enable proprietary features for its UK customers:
We have re-enabled a feature that allows UK customers to directly convert cryptocurrency to fiat currency (GBP/EUR) and transfer it to their Paypal account.
Coinbase’s background on system outages
When Bitcoin (BTC) volatility intensifies, especially when it reaches new all-time highs, Coinbase’s system reliability is usually concerned.
Last weekend, the San Francisco trading platform experienced a “delayed transfer” problem. The day before, it suffered from “transmission delay and error rate rise.”
In another case on Monday, analyst Willy Woo Tweet Regarding the San Francisco exchange Coinbase, it said that “the purchase of Coinbase has not yet been completed.” This time the problem occurred when the price of Bitcoin had fallen even more.
According to Coinbase’s status page, as of press time, although the platform is working well, some customers have been experiencing delays in ID verification.
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