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Coinbase Says ‘No’ to Online Gambling, Blocks SealsWithClubs Player

Chris in Bitcoin & Cryptocurrency published on 21, August 2014

Coinbase Blocks

A more concerned than distressed Seals With Clubs bettor took the initiative to warn on Reddit fellow Bitcoin poker players of the possible blockage of their Coinbase account due to gambling-related activities online.

User lhr0909 shared the unfortunate event that took place after playing on the largest Bitcoin-only poker platform and depositing bitcoins using the Coinbase account.

According to the Reddit post, Coinbase, a Bitcoin exchange and wallet service for the US market, informed him through an email message that he can no longer acquire any of its services for the main reason he used Coinbase for gambling purposes.

The Bitcoin exchange continued, branding the act of gambling as “illegal under US law,” which had sparked negative commentary from other Reddit users.

Gambling per se is not against the US law, but it would be illegal for Coinbase to consciously attend to deposit and cash out transactions with a Bitcoin gambling platform, as pointed out by another Reddit user under the name Xelif:

“It’s illegal for them to knowingly process payments to and from a gambling (including poker) service, but gambling itself is not illegal under US law. (It is illegal under some state laws.)”

Fortunately, though, Coinbase still allowed the author of the post to transfer the remaining Bitcoin balance to another Bitcoin wallet address, but future withdrawals from the Bitcoin poker website and any other gambling platform to the Coinbase wallet will not be permitted anymore.

Meanwhile, he shared that he confessed to the Bitcoin exchange that he, in fact, had used his Coinbase account to transfer funds to the Bitcoin poker platform. He, then, advised others to use a real wallet instead of one that is provided by an online exchange.

Other Seals with Clubs bettors who also use Coinbase for gambling took note of the matter and are looking at other wallet options as a preparation for the possibility of being in the same situation.

The disappointment and frustration on the online exchange, however, was not contained by user recz255, stating:

“Coinbase is good for buy/sell, that’s it. It’s a bad wallet. Slow. Looks at what you’re doing with your money, etc.  Never use CB as a wallet.”

On a similar note, another instance of having the Coinbase account blocked was shared, recalling that some bettors have also been blocked after processing their cashouts from Betcoin.

 

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