Your CoinJar Account is Restricted: Why It Happens and How to Fix It

You sit down to check your crypto portfolio or place an order, and a message appears saying your account has been restricted or locked. It can feel alarming. You might worry that your money has disappeared or that you have done something seriously wrong.

In most cases, that is not what has happened. An account restriction is usually a safety measure, not a punishment. It can be triggered by automated security checks or by regulatory and compliance requirements. These controls are there to help protect your money and the wider platform.

Cryptocurrency itself is high risk and prices can be very volatile. Account protections do not remove the risk of loss, and you should only invest money you can afford to lose.

This article explains the common reasons CoinJar accounts are restricted and what you can do to resolve the issue.

Common Security Triggers

CoinJar uses automated security systems that monitor account activity at all times. These systems look for patterns that appear similar to fraud or hacking. If they detect something unusual, they may place a temporary restriction on the account to reduce the risk of unauthorised withdrawals.

Suspicious Activity Detection

If the system spots behaviour that differs from your usual activity, such as a sudden large withdrawal shortly after a password change, it may flag the account. This is similar to a bank blocking a card if it is used in a new country without warning.

A restriction at this stage is a protective step. It does not mean that fraud has definitely taken place, but it gives time to confirm that the activity is genuine.

Login Irregularities

• Multiple failed attempts: Repeatedly entering the wrong password can trigger a lock. This helps defend against "brute force" attacks, where software tries many passwords in a short period of time.
• Unverified devices: Logging in from a new computer, mobile phone or browser can lead to a temporary restriction until you confirm that the new device belongs to you, usually by email or two-factor authentication.

If you are regularly changing devices or browsers, you may see more checks. These checks can be inconvenient, but they are intended to reduce the risk of someone else accessing your account.

Two-Factor Authentication (2FA) Issues

2FA is an important extra security layer. If you turn off 2FA on an account that previously had it enabled, or if there are repeated failures when entering your 2FA code, the system may restrict the account. This helps guard against someone trying to bypass your security settings.

Keeping 2FA switched on and using a secure method, such as an authenticator app, can lower the chance of an attacker gaining access, but it does not completely remove risk.

Regulatory and Compliance Reasons

As a UK cryptoasset service provider, CoinJar must follow strict financial crime and compliance rules, including Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations. These rules require CoinJar to understand who its customers are and where their funds come from.

These obligations can sometimes result in account restrictions or delays. This is not about your investment choices. It is about meeting legal requirements.

Name Matching Requirements

One of the most common reasons for a restriction relates to bank deposits. CoinJar uses name matching on payments. The name on your verified CoinJar account must match the name on the bank account that sends money to it.

• The issue: If you try to deposit money from a friend’s bank account, a relative’s account or a business account into your personal CoinJar account, the payment is likely to be flagged. The account may be restricted and the deposit may be returned.

This can feel frustrating if you are just trying to move money quickly. However, accepting funds from third parties can create money laundering risks, so CoinJar is required to review it.

Joint Account Limitations

CoinJar generally does not support deposits or withdrawals from joint bank accounts. If you share a bank account with a spouse or partner and use it to fund your own CoinJar account, this can trigger a compliance review.

• The solution: Use a bank account that is held only in your name for deposits and withdrawals wherever possible. If a joint account is your only option, CoinJar may consider this on a case-by-case basis. This usually involves manual checks and extra documents, and it may take longer or may not be approved.

Even if a joint account is accepted once, there is no guarantee it will always be accepted in the future. Rules and risk assessments can change.

Incomplete Identity Verification

To access certain features, especially withdrawals, you must complete identity verification. This helps meet legal requirements and also reduces the risk of someone pretending to be you.

If your documents have expired, if they are unclear, or if your initial verification was not completed, your account functions may be limited. You may not be able to withdraw, and in some cases new deposits and trades can also be restricted until updated information is provided.

Keeping your personal details and documents up to date can help avoid these interruptions, although further checks may still be required from time to time.

Regional Restrictions (UK Cooling-Off Period)

Rules can differ between countries. For example, if you are a UK resident, you are subject to a mandatory 24-hour cooling-off period after creating a new CoinJar account.

During this time, your account is restricted. You cannot deposit, trade or withdraw until the period ends. This is a regulatory requirement aimed at giving new customers time to consider whether they understand the risks of cryptoasset investing and whether it is suitable for them.

This cooling-off period does not guarantee better outcomes or protect you from losses. It simply adds a pause before you start trading.

Technical Triggers: VPNs and Location

Your physical location and your internet connection can also affect your account access.

VPN Usage

A Virtual Private Network (VPN) can hide your real IP address and make it appear as if you are in a different country. Many people use VPNs for privacy or to secure public Wi-Fi. However, criminals also use VPNs to conceal where they are.

For this reason, CoinJar’s systems may restrict accounts that are accessed using certain VPNs or IP addresses. This is usually a precaution. If you rely on a VPN, you may need to adjust your settings or disable it when accessing your account.

Using a VPN can also make it more difficult for CoinJar to confirm that a login attempt is genuinely from you, which may increase the number of security checks you experience.

Prohibited Jurisdictions

Some countries place limits on cryptocurrency trading or on the services that foreign exchanges can provide. If you travel to a country where cryptocurrency exchanges are banned or heavily restricted, you may find that your CoinJar account is inaccessible or limited.

For example, if local rules in a particular country prevent CoinJar from offering services there, attempting to log in from that country may trigger restrictions. These rules can change, and you are responsible for understanding and complying with the laws that apply to you when you access your account.

Real-Life Examples

Here are some typical situations that can lead to a restriction. They may help you work out what has happened in your case.

• The "Traveller" scenario: You are on holiday and log in from hotel Wi-Fi using a new laptop. Because the location and device are both unfamiliar, CoinJar restricts withdrawals until you confirm the login through email or an authentication prompt.
• The "Spouse" scenario: You want to buy crypto quickly, so you send money from a joint bank account you share with your partner. Because the bank account name does not exactly match your individual CoinJar profile, the deposit is rejected and your account is flagged for review.
• The "Business" scenario: You try to fund your personal CoinJar account using your company’s bank account. Since business funds should not normally be mixed with personal trading accounts, and should instead go through a specific business account setup, the transaction triggers a compliance lock.

In each of these situations, the restriction is a response to a specific risk factor. It does not mean that your funds are automatically lost, but it does mean that extra checks are required.

How to Stay Safe: Red Flags

When your account is restricted, it is normal to feel worried or under pressure. Scammers often try to take advantage of that feeling.

• Beware of phishing emails: If you receive an email saying your account is locked, check the sender’s address and any links carefully. Genuine emails will come from CoinJar’s official domain. If you are unsure, go directly to the CoinJar website or app instead of clicking on links.
• Never share passwords: CoinJar support will never ask you for your password or your 2FA codes to resolve an issue. If someone does ask for this information, they are not from CoinJar.
• Avoid third-party "recovery" agents: On social media, you may see people or bots claiming they can "recover" locked accounts or "hack" them open for a fee. These offers are scams. Only CoinJar support can remove or adjust an account restriction.

If something feels urgent or too good to be true, pause and verify. Taking a few extra minutes can prevent much larger losses.

Resolving Account Restrictions

If your account has been restricted, the steps below are a sensible starting point.

1. Check your email: CoinJar usually sends an automated email that explains the reason for the restriction or the next steps. Look in your inbox and your spam or junk folder. Make sure the email has come from an official@coinjar.com address.
2. Verify your identity: Check that your identity documents in the app or website are up to date, clear and valid. If you are asked for additional documents, try to provide them promptly and in the requested format.
3. Review bank details: Make sure you are only using bank accounts in your own name, and that the details match your CoinJar profile. Avoid using joint or third-party accounts for deposits or withdrawals.
4. Contact support: If the reason for the restriction is still unclear, contact CoinJar Support through the official help centre (support@coinjar.com). You may be asked for extra information or documents. Response times can vary, especially during busy periods, and some checks may take time to complete.

Restrictions are not lifted automatically in every case. Outcomes can differ depending on the information available and on legal or regulatory obligations.We will never ask you to transfer your funds to a new account, and you should never follow any such instruction. If we ever require you to move funds, we will only request that you transfer them between your own existing accounts.

Why Account Security Matters

Account restrictions can be inconvenient, especially if you want to react quickly to price changes. However, they are an important part of operating a safer service in a high-risk area like crypto.

By enforcing identity checks, monitoring account activity and applying restrictions when needed, CoinJar aims to reduce the risk of money laundering, fraud and identity theft. These controls cannot remove all risk and they may sometimes affect genuine customers, but without them the risk to everyone would be higher.

You can think of these measures as similar to the security on a bank vault timer. They make it harder for someone to move money quickly if they gain access to your details. By understanding common triggers, such as using only personal bank accounts, keeping 2FA active and avoiding suspicious VPN usage, you can reduce the chances of unexpected restrictions and make your experience more predictable.

Remember that even with strong security, holding or trading crypto remains speculative and can lead to losses, including the full loss of your investment. Always consider your own financial situation and risk tolerance before depositing funds.