
Coinbase
Coinbase can suspend accounts for compliance review
Suspected fraud, compliance issues, or 'suspicious activity' can trigger account suspension. Funds may be frozen during investigation.
Coinbase operates as a custodial wallet
Crypto in Coinbase isn't in your wallet, it's in theirs. You don't control the private keys. Coinbase holds the crypto on your behalf.
Coinbase shares transaction data with IRS per reporting requirements
Following IRS enforcement action, Coinbase reports user transaction data to tax authorities as required by law for qualifying accounts.
Service outages occur during high market volatility
Historical pattern shows degraded performance or outages during rapid price movements when trading volume spikes.
Cryptocurrency is not FDIC insured
Your crypto holdings could vanish in a hack or market crash with zero government protection. At least your volatility is decentralized!

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