Account Restrictions on CoinJar: Causes and Solutions

You open CoinJar to check your balance or place an order, then see a message that your account has been restricted or locked. It can feel alarming. You might worry that your money has disappeared or that you have broken a rule.

In most cases, this is not a punishment. It is a protective measure. Restrictions are usually triggered by automated security checks or regulatory requirements. They are designed to protect your assets, reduce fraud, and help CoinJar meet its legal obligations in the EU, the UK, and other supported regions.

This article explains the most common reasons CoinJar accounts are restricted and what you can do to resolve the issue in a calm, structured way.

Common Security Triggers

CoinJar uses automated security systems that monitor account activity at all times. These systems look for unusual patterns that could indicate fraud, account takeover, or technical abuse.

If they detect something outside your normal behaviour, they may place a temporary restriction on your account. This is mainly to prevent unauthorised withdrawals or changes to your settings.

Suspicious Activity Detection

If the system sees behaviour that does not match your usual use, your account may be flagged. For example, a very large withdrawal request shortly after a password reset can look suspicious.

This works in a similar way to a bank that blocks a card when it is suddenly used in a new country or for an unusual type of purchase.

Login Irregularities

• Multiple failed attempts: Entering the wrong password several times can trigger a restriction. This helps protect against so‑called brute force attacks, where someone uses software to try many password combinations.
• Unverified devices or browsers: Logging in from a new computer, phone, browser, or network may result in temporary limits. In many cases, you will need to confirm the login through email or two-factor authentication (2FA) before full access is restored.

Two-Factor Authentication (2FA) Issues

2FA is an important extra security layer. If 2FA is removed from an account that previously had it enabled, or if there are repeated failures to enter the correct 2FA code, the system may restrict access.

This helps prevent someone from disabling your security settings if they gain partial access to your details.

Regulatory and Compliance Reasons

CoinJar must follow financial regulations in the EU, the UK, and other supported regions. These rules include Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements.

In practice, this means CoinJar must know who is using an account and where the funds are coming from. If something does not match, restrictions may apply until the issue is resolved.

Name Matching Requirements

One of the most frequent reasons for a restriction is a problem with bank deposits or withdrawals.

CoinJar enforces strict name matching. The name on your verified CoinJar account must match the name on the bank account you use to send or receive funds.

• The issue: If you try to deposit money from a friend’s bank account, from a company account into a personal CoinJar account, or from any account where the name does not clearly match, the transaction may be flagged. In many cases, the deposit will be returned to the original bank account and your CoinJar account may be temporarily restricted while the situation is reviewed.

Joint Account Limitations

Joint bank accounts can create confusion about who owns the funds and who is responsible for the activity.

CoinJar generally does not support deposits or withdrawals from joint bank accounts into an individual CoinJar account. Even if one of the names matches, the presence of an additional account holder can trigger compliance checks.

• The solution: Use a bank account that is held solely in your name for funding and withdrawals. If a joint account is your only option, CoinJar may need to review this on a case-by-case basis. This can require extra documents and may take longer to complete.

Incomplete Identity Verification

Access to some features, especially withdrawals and higher transaction limits, requires full identity verification.

Your account may be restricted if:

• Your identity documents have expired.
• Your verification information is incomplete or unclear.
• Additional documents are required under AML or KYC rules.

In such cases, some or all functions, including withdrawals, may be paused until you provide updated documents and they are reviewed.

Regional Restrictions (Including UK Cooling-Off Period)

Regulatory rules can differ between regions.

For example, residents in the United Kingdom are subject to a mandatory 24-hour cooling-off period after creating an account. During that period, the account is restricted and you cannot deposit, trade, or withdraw until the time has passed. This is designed to give new customers time to consider the risks of crypto-assets.

Some EU countries may apply similar consumer protection measures or additional checks for certain products or marketing. In these situations, your account or specific features may appear limited until those requirements are met.

Technical Triggers: VPNs and Location

Your location, both physical and digital, can affect how and when you can access your account.

VPN Usage

A Virtual Private Network (VPN) can hide your real IP address and make it look as if you are in a different country.

While many people use VPNs for privacy, they are also used by criminals to cover their tracks. Because of this, CoinJar’s security systems may treat some VPN logins as higher risk.

If your account is accessed from an IP address that appears suspicious or inconsistent with your usual pattern, CoinJar may restrict activity until the login is verified.

Prohibited or High-Risk Jurisdictions

If you are in, or appear to be in, a country where CoinJar is not permitted to operate, your access may be limited.

Some countries restrict or ban the use of cryptocurrency exchanges. If you travel to one of these jurisdictions or connect through an IP address located there, you might find that your account is temporarily inaccessible or that certain features are blocked.

Real-Life Examples

These examples are simplified, but they show how common situations can lead to restrictions.

• The traveller scenario: You go on holiday, connect to hotel Wi‑Fi, and log in from a new laptop. The combination of a new device, a new network, and possibly a new country looks unusual. CoinJar then limits withdrawals until you confirm the login via email or 2FA.
• The spouse scenario: You want to buy crypto quickly, so you send money from a joint account you share with your partner into your personal CoinJar account. Since the bank account name does not exactly match the name on your CoinJar profile, the deposit is rejected and your account is flagged for a compliance review.
• The business scenario: You try to fund your personal CoinJar account using a company bank account. Personal and business funds must be kept separate unless a specific business account has been set up and verified. The transaction is blocked and a temporary restriction is applied while support reviews the details.

How to Stay Safe: Red Flags

When your account is restricted, you might feel pressured to act quickly. Scammers know this and may try to take advantage.

Keep these warning signs in mind:

• Phishing emails or messages: If you receive an email or message stating that your account is locked and asking you to click a link, always check the sender’s address carefully. Official messages will come from CoinJar’s verified domain. When in doubt, access CoinJar by typing the address into your browser rather than using a link.
• Requests for your password or 2FA codes: CoinJar support will never ask for your password, full 2FA codes, or full recovery phrases. If anyone asks for these details, treat it as a scam.
• Third-party “recovery” services: Some people on social media or messaging apps may claim that they can restore access to your account for a fee or by “hacking” it open. These offers are not legitimate. Only CoinJar’s official support team can remove or adjust an account restriction.

Resolving Account Restrictions

If your account has been restricted, you can usually resolve it by following a few clear steps.

1. Check your email: CoinJar typically sends an automated email explaining why your account has been limited and what action is needed. Remember to check your spam or junk folder.
2. Update and verify your identity: Log in to your CoinJar account (if possible) and check your verification status. Make sure your ID documents are valid, clear, and up to date. Follow any prompts to upload documents or provide additional information.
3. Review your bank details: Confirm that you are using a bank account in your own legal name, and that it matches the name on your CoinJar profile. Avoid using joint, business, or third-party accounts for personal transfers.
4. Contact support: If the reason for the restriction is unclear, or if you believe it has been applied in error, contact CoinJar Support through the official help centre. Be prepared to provide extra documents or information if requested so the team can complete their checks.

Response times may vary depending on demand and the complexity of the case, especially where regulatory checks are involved.

Why Account Security and Compliance Matter

Account restrictions can feel frustrating in the short term. However, they help protect both individual customers and the wider financial system.

By enforcing identity checks, name matching, and security controls, platforms like CoinJar aim to reduce money laundering, fraud, and unauthorised access. This supports a safer and more transparent environment for using crypto-assets.

You can think of these measures as similar to a time-lock on a bank vault. They add an extra layer of protection so that, even if someone gains part of your information, they cannot easily move your funds without further checks.

By understanding the common triggers, such as device changes, VPN use, or deposits from non-matching bank accounts, you can plan your activity and reduce the chance of unexpected restrictions.