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

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.

Chris Evans

Chris Evans

A passionate adherent of the casino industry, Bitcoin has changed Chris’ life. Now, aside from working as the Business Development Manager of Bitcoin Gambling Guide, he spends his time working on new ways to help the cryptocurrency community as well as the online gambling industry. He regularly stays updated with the latest trends in the Bitcoin gambling market to continually gain insights and clearer perspectives on the path the digital currency is taking. Included in his mission to forward the market is his personal goal to share worthy and unique ideas that will pave the way for more innovations and developments. If not preoccupied in juggling with his duties, Chris devotes his time betting in Bitcoin casinos. Who said it’s impossible to work and play at the same time?

More from author
Cryptocurrency Prices by Coinlib