Coinbase, a digital asset exchange company headquartered in San Francisco, CA, is believed to draw plenty of criticism this year.
Thus, an online student loan market LendEDU reports that Coinbase has received 288 complaints in 2017, a figure that represents a dramatic increase from the six complaints the startup received in 2016.
Coinbase complaints chart according to lendedu.com
LendEDU specialists asked Tyson Cross, an attorney with Cross Law and a specialist in Bitcoin tax law and anti-money laundering compliance, about the rise in complaints:
As a whole, the industry is growing and more consumers are creating accounts. At Coinbase, the userbase is growing very rapidly. However, as the industry has grown so to have the restrictions placed on companies like Coinbase by regulators. Regulators have forced exchanges, like Coinbase, to place tight restrictions and limits on users due to anti-money laundering concerns. Coinbase, and other exchanges, now require an in-depth verification process to withdrawal money.
An attorney with Cross Law and a specialist in Bitcoin tax law and anti-money laundering compliance
As reported, Cross went on to say that he believes the increase in complaints against exchanges is caused by the increasingly strict verification processes.
Concerning the complaints, Coinbase has pledged to use a new funding round to boost its struggling customer service.