Are you a gambler? STAY AWAY FROM COINBASE!

[alani123]

I'm moving all my funds away from them and it's not just because I'm a gambler. Coinbase's User Agrement was updated on July 10, I don't know if  this was added in the latest update but it's obscene. Take a look below.

7. Restricted Activities.

7.1. Fiduciary Accounts/Custodial Assets. You hereby certify to us that any funds used by you in connection with the Coinbase Services are either owned by you or that you are validly authorized to carry out transactions using such funds. In particular, you acknowledge that Coinbase may not be a qualified custodian under applicable law, and represent that your use of the Coinbase Services is in compliance with any applicable requirements governing the maintenance and use of fiduciary accounts and custodial assets.

7.2. Restricted Activities. In connection with your use of the Coinbase Services, and your interactions with other users, and third parties you will not:

• Violate or assist any party in violating any law, statute, ordinance, regulation or any rule of any self-regulatory or similar organization of which you are or are required to be a member (for example, those laws, rules, or regulations governing financial services, controlled substances, unlawful gambling or consumer protections);

I asked that this should be clarified a bit more, the response I got was that they comply to the US law and will suspend accounts that don't comply to the regulations accordingly.
Engaging to any gambling service would put your account at a risk. And it's unclear how this would affect your funds. I'm calling it now. ABANDON COINBASE! They don't respect your freedom, they monitor transactions and will shut down your account no matter where you live according to the US law.

Relevant article (not written by me):
http://www.pokersites.com/news/bitcoin-online-poker-transactions-refused-coinbase-2044

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[Milkcookie]

i moved all my coins last week i have a very bad felling about coinbase

[bitsire]

i moved all my coins last week i have a very bad felling about coinbase

Good idea. I wouldn't touch Coinbase with a barge pole.

[AirFlame]

Wow this is sad R.I.P. Coinbase soon

[xetsr]

Interesting. Are they tracing back to hot wallets? Wouldn't that cause problems though: Let's say someone gambles at a dice site, wins and trades the BTC they receive. Whoever receives that BTC sends to coinbase, not knowing it was from gambling activities. What happens?

or you could create a blockchain wallet and transfer the BTC around a bit before sending to coinbase.

[btckold24]

just a way for them to steal coins from people if they think you have ties to gambling - screw that and them moved 1.4 btc out today

thx for bringing this to people's attention I admit I rarely read the fine print lol.

[degold]

i moved all my coins last week i have a very bad felling about coinbase

Good idea. I wouldn't touch Coinbase with a barge pole.

Coinbase just following US law, because they abide by US law.
It is their responsiblities to do, they are giving option to withdraw.

[alani123]

Coinbase just following US law, because they abide by US law.
It is their responsiblities to do, they are giving option to withdraw.

I believe that we're coming to this as a result of the millions of dollars that was invested to them. They're playing it safe. But using coinbase as a bitcoin wallet is pointless now. You don't even have control over your own coins and now your account could be shut down at any given time just for sending out a transaction to a suspicious website. This is all the way against the neutrality bitcoin offers.

I won't let coinbase practise fractional reserve with my coins any longer. They shouldn't even been considered a wallet service any more.

[AirFlame]

The best potection and use cold storage this is my opinion

[blablaace]

what happened?

they used to be good

[deadley]

what happened?

they used to be good

They are still good, but if you are using coinbase for gambling then you are not safe,
Coinbase will close your account and ask you to transfer your coins.

[blablaace]

wtf is wrong with them?

why they do that?

and who's behind that?

[deadley]

wtf is wrong with them?

why they do that?

and who's behind that?

US government, they don't want to take risk with their license.

[CoinsCoinsEverywhere]

It's unwise to store bitcoin at Coinbase or on any other exchange for an extended period of time...unless you like the idea of getting Goxed.  One of the advantages of cryptocurrencies is that you have the ability to protect your coins as much as you want.  I suggest protecting them well yourself.

[achow101]

I never think and never use COINBASE 

[thecoinjournal]

wtf is wrong with them?

why they do that?

and who's behind that?

According US law, it is illegal for any merchants to help the customer to send funds to casinos.

[LuckyBtc]

Thanks for this post alani123!! will be moving all my coins from coinbase.

[bitkilo]

I admit i use coinbase for small transactions because i find it easy but after readind this i may have to go back to my blockchain wallet.
I dont gamble but might try a $2 bet or something very small in the future. Im outside of usa so would these laws apply to me or still not worth the risk?

[BayAreaCoins]

Steering clear of Coinbase in general.

They shut me off without explanation.  Well actually they said it was because I had multi accounts, so I closed them and then they stopped responding to me all together.

[Shogen]

Thanks alani123 for the alert.

It's unwise to store bitcoin at Coinbase or on any other exchange for an extended period of time...unless you like the idea of getting Goxed.  One of the advantages of cryptocurrencies is that you have the ability to protect your coins as much as you want.  I suggest protecting them well yourself.

Exactly. You should deposit bitcoin to your exchange account only if you are going to sell the coin soon.