Account Restrictions on CoinJar: Causes and Solutions

You log-in to check your portfolio or make a quick trade, and instead of your dashboard you see a message: your account is restricted or locked. It is a stressful moment and it is natural to worry about your funds.

In almost every case, a restriction does not mean your money is gone. It usually means the security systems that protect your account are doing their job.

Why CoinJar restricts accounts

Think of a crypto exchange as a digital version of a bank vault. If a bank security guard saw someone trying to open a safe deposit box with a damaged key or wearing a disguise, they would step in straight away.

CoinJar’s security systems work in a similar way. They monitor for red flags to help prevent fraud, money laundering and unauthorised access.

Suspicious activity detection

CoinJar uses automated security systems that run 24/7. If these systems detect activity that looks unusual for your account, such as a withdrawal to a high-risk wallet address or a sudden jump in trading volume, they may place a temporary restriction on the account.

This pause gives the security team time to review the activity and confirm that it is actually you making the request.

Multiple failed login attempts

If you or someone else enters the wrong password too many times, the system treats this as a possible brute-force hacking attempt. To protect your account, access may be temporarily locked.

Unverified devices and locations

Logging in from a new device or a different country can trigger a security alert. Many people trade while travelling, but sudden location changes, such as logging in from London an hour after logging in from Sydney, may lead to a temporary lock until CoinJar can verify the new access point.

User-initiated locks

CoinJar includes a Lock Account feature that lets you freeze your own account. If you think your email has been compromised, your phone has been stolen or you are dealing with a SIM-swapping attack, you can proactively lock your account to block withdrawals.

Regulatory compliance restrictions

Unlike a decentralised wallet, where you control your funds anonymously, centralised exchanges must follow strict financial regulations. These laws, including Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) requirements, mean CoinJar must know who is using the platform and how.

Incomplete identity verification (KYC)

Know Your Customer (KYC) is the mandatory process of verifying a user's identity. If your documents are expired, unclear or incomplete, some functions (especially withdrawals) may be restricted until you provide updated information.

Name matching requirements

CoinJar enforces strict name-matching rules. The name on your verified CoinJar account must match the name on your bank account exactly.

The rule: You cannot deposit funds from a friend’s bank account or withdraw to a relative’s account.

The result: If a deposit arrives from a bank account with a different name, CoinJar may restrict the account while the transaction is rejected and reversed.

Joint account issues

CoinJar generally does not support deposits or withdrawals from joint bank accounts. It is strongly recommended that you use a bank account held only in your own name.

If you try to use a joint account, it can trigger a manual review and possible restriction.

Business entity verification

Business accounts (such as Company, Trust or SMSF accounts) require more documentation than personal accounts. If the beneficial owners change, or if updated corporate registry documents are needed, CoinJar may restrict the account until the new information is reviewed and approved.

Technical triggers and VPNs

Your internet setup can also trigger security checks, sometimes by accident.

VPN usage

A Virtual Private Network (VPN) hides your true location. Many people use VPNs for privacy, but criminals also use them to cover their tracks.

The conflict: If you log in with a VPN that routes your connection through a high-risk or prohibited country (for example, a sanctioned jurisdiction), the system may automatically lock the account as a precaution.

Regional blocks: Some countries restrict or block access to crypto exchanges. If you are in one of these places, you may not be able to access your account.

Real-life examples

These common situations show how and why restrictions can occur:

The traveller: You fly to another continent and, as soon as you land, you try to withdraw crypto over the hotel Wi-Fi. The system flags this as impossible travel or an unfamiliar IP address and restricts withdrawals to protect you from potential remote hacking.

The typo: You register your CoinJar account as "Jonathan Smith" but send funds from a bank account in the name of "Jon Smith". That mismatch raises a compliance flag, and the deposit is held while the team checks whether "Jonathan" and "Jon" are the same person.

The safe lock: You lose your iPhone in a taxi. Worried that someone might get into your app, you log in from your desktop browser and use the Lock Account feature. The account is frozen and no one can move funds until you work with support to unlock it.

Red flags: How to stay safe

If your account is locked, you may be more likely to fall for offers that claim to fix the problem. This is exactly what scammers rely on.

Ignore "account recovery" services: Scammers on social media (X, Instagram, Reddit and others) often say they can unlock your account for a fee. They cannot. Only CoinJar support staff can remove a restriction.

Check where emails come from: If you get an email saying your account is locked, make sure it is actually from CoinJar. Phishing emails often use fear to push you to click a bad link. Always check the sender’s address and, if you are unsure, go directly to the official CoinJar website or app instead of clicking links.

Be careful with two-factor authentication (2FA): If your 2FA stops working or you turn it off, your account may be restricted for a cooldown period. This helps stop hackers from removing your 2FA and taking over your account.

How to resolve account restrictions

If your account is restricted, work through these steps to restore access:

Check your email: CoinJar usually sends an automated email explaining the restriction or asking for more information. Check your spam or junk folders as well.

Complete verification: If you are asked for a new ID selfie, proof of address or source-of-funds information, upload these promptly through the official app or website.

Review your banking details: Make sure you are not using a third-party or joint bank account. Use a bank account in your own name.

Contact support: If the reason for the restriction is still unclear, submit a ticket through the official CoinJar Support page. Be ready to answer security questions so the team can confirm your identity.

Summary

Seeing a "Restricted" notice on your account is frustrating, but it rarely means your assets are at risk. In most cases these controls exist to meet legal requirements and, more importantly, to protect you from theft and fraud.

By using a bank account in your own name, keeping your ID documents current and avoiding VPNs while trading, you can reduce the chance of interruptions and keep your crypto activities running smoothly.