The largest exchange in the US, Coinbase is taking steps to rebuild user trust amid one of the platform’s most controversial issues, account freezes.
Users condemn unnecessary account freezes and failed recovery efforts despite submitting all necessary KYC (knowing customers) documents.
Did Coinbase eventually fix the account freeze issue?
Coinbase CEO Brian Armstrong has announced a major breakthrough with one of the platform’s most controversial issues: unnecessary account freezes.
According to Armstrong, the company has reduced account limits by 82%. This move could reconstruct how both retail users and businesses perceive exchanges.
Coinbase Exchange executives praised Dor Levi, a newcomer on the platform, who is responsible for overhauling the restriction system, for their accomplishments.
Based on comments about X (Twitter), account freezes have long been a point of distress among Coinbase users. Some people cite the need for a long, opaque verification process.
The complaints ranged from a few weeks of lockout to repeated KYC requests even after previous submissions.
“Even though I have submitted all the necessary KYC documents, my account has been frozen for several weeks, which has been causing real economic harm to many once loyal users,” writes Hunter, senior ecosystem development/investment leader at Tron.
Dor Levi, who joined Coinbase nine weeks ago, outlined the team’s reforms in detail. He explained that improving machine learning (ML) models, strengthening infrastructure and adding in-app self-service tools allows Coinbase to reduce the frequency of freezes without compromising compliance.
“Account freezes are rare and should be limited to situations where you are primarily legally obligated or protecting users… We have invested heavily in ML models, infrastructure and teams. Most limiting types are resolved quickly through more efficient self-service flows than before,” Levi emphasized.
Nevertheless, despite viewing progress as potentially transformative, industry insiders met the update with cautious optimism.
“Love Brian. This was a big issue in Coinbase recognition. I personally stopped using Coinbase because of the hoops needed to unlock my account.”
Influencer Alex Becker agrees that this feature suggests that it could attract users to Coinbase and place them as a “business bank account.”
Still, the damage to Coinbase’s reputation among retail investors remains significant, indicating that it still has a long way to go before Coinbase restructures the reliability of its clients in this sector.
With an 82% reduction achieved and more updates promised, the question is whether Coinbase can not only be a crypto exchange, but also potentially regain its reputation as a functional and secure platform for businesses to store and move capital with confidence.
“Damages are easy at retailers,” commented Crypto YouTuber Wendy O.
Wendy also noted that her wide social audience across the platform has sour feelings about the platform. Additionally, additional comments indicate pending or unresolved cases.
“The account is restricted because we cannot create ownership of the Metamask Wallet that we use to deposit Stablecoins with Coinbase,” wrote Tony Gallippi, co-founder of Bitpay.
Coinbase appears to be taking proactive steps to resolve long-standing restrictions issues, but the path to restoring user trust is not over.
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