Key Takeaways
- This is why transfers might be reviewed and how to prevent future delays.
- Delays can occur due to blockchain confirmation times, banking system processing times (especially for first-time PayID transfers or standard bank transfers), and verification requirements.
- Troubleshooting steps include checking transaction status, blockchain confirmations, banking details, and timing.
As a CoinJar UK customer, you might experience delays with your cryptocurrency transactions. Whether you're waiting on deposits, withdrawals, or trades, understanding why these delays occur and how to address them can save you time. This guide explores common causes of transaction delays and provides practical troubleshooting steps.
Common causes of UK transaction delays
Let’s get into the snafus that might delay a transaction.
Blockchain confirmation times
When sending to or receiving from external cryptocurrency wallets or exchanges, transaction speed depends entirely on the blockchain network of that particular cryptocurrency. Each blockchain has its own confirmation requirements.
-Bitcoin can take anywhere from 10 minutes to several hours depending on network congestion.
-Ethereum is typically faster than Bitcoin but may slow during high network activity.
-Faster cryptocurrencies like XRP and Stellar typically (but not always) confirm within seconds to minutes.
During periods of high market volatility, confirmation times may increase significantly as networks become congested with transactions.
Travel rule reviews (UK specific)
In compliance with UK regulations, certain transactions may be held for review under the Travel Rule. This regulatory framework requires financial institutions to share specific information about transactions to help prevent money laundering and terrorist financing.
When might your transaction be reviewed?
All transfers between centralised exchanges (CEXs) are subject to scrutiny under the Travel Rule. This means that if you’re moving assets from CoinJar UK to another centralised platform, your transaction will undergo a review process.
If the other centralised platform does not supply the required travel rule information (typically when its based overseas) CoinJar is not permitted to accept the transfer under the Money Laundering Regulations, and must send it back.
On the other hand, transfers between a centralised exchange (like CoinJar UK) and a self-hosted wallet, where transactions occur directly between users without a central authority, are typically processed more swiftly.
However, even in these cases, users are still required to submit a Travel Rule form to meet regulatory obligations.
Regardless of the transfer type, submitting accurate and timely information via the Travel Rule form is critical to avoiding delays and ensuring compliance with UK law.
UK banking system processing times
When making GBP deposits:
-Faster Payments: While typically processed within 10 to 20 minutes, cutoff times apply.
-While Faster Payments is available 24/7 for many banks, some institutions may still experience delays or hold transactions initiated over weekends or holidays until the next business day, especially for larger or first-time transfers. This depends on the specific bank’s policies.
Verification Requirements
Several verification factors can affect transaction processing:
-Name matching requirement: Deposits must come from bank accounts in your exact legal name.
-Joint accounts: Not accepted for deposits.
-24-Hour Cooling-Off Period: New CoinJar UK accounts are subject to a mandatory 24-hour waiting period before any transactions can be processed. This period begins once the account is created and the user has completed the knowledge test.
When a user signs up for a CoinJar account, the 24-hour cooling-off period starts immediately. This happens prior to email confirmation. If the user fails to confirm their email address within 24 hours, their account will be automatically deleted from the system, requiring them to sign up again.
Troubleshooting transaction delays
Here’s what you can do if things slow up.
Check your transaction status
First, verify your transaction status within your CoinJar dashboard. Look for:
-Pending status
-Processing status
-Any error messages or emails or push notifications.
Verify blockchain confirmations
For cryptocurrency transfers:
-Use a blockchain explorer relevant to your cryptocurrency
-Search using your transaction hash/ID
-Check the number of confirmations (typically 2-6 confirmations are required for finality)
Review banking details
For fiat currency delays:
-Verify the sort code and account number.
-Ensure that you enter your Account Name into your banking website or app exactly as it appears on CoinJar's FPS deposit screen. Do not use "CoinJar" or "CoinJar UK Limited" as the Account Name within your banking website / app."
Check timing and cut-offs
GBP withdrawals via Faster Payments should arrive within 2 hours but at times might take 1-2 business days.
Contact support
If your transaction hasn't arrived within the expected timeframe:
For GBP withdrawals: Wait up to four business days before contacting support.
Provide your transaction ID and relevant banking details.
Common questions about delays
Why is my transfer being reviewed?
Transfers may be flagged for review for several reasons.
Travel Rule compliance: UK regulations require additional information for certain transactions.
Security measures: Protection against unauthorised account access.
Compliance checks: Anti-money laundering and counter-terrorist financing regulatory obligations.
During a review, CoinJar's compliance team may request additional information to verify the transaction's legitimacy.
Why does blockchain confirmation time vary?
Blockchain networks operate on a consensus mechanism that requires multiple network participants to validate transactions. Factors affecting confirmation time include:
Network congestion: More users conducting transactions slows processing.
Blockchain design: Different cryptocurrencies have different block times and confirmation requirements.
Preventing future delays
Follow these best practices to minimise transaction delays:
-Complete full verification before attempting withdrawals.
-Use only personal bank accounts registered in your exact legal name.
-Consider network fees when sending cryptocurrency.
-Keep your account information updated to avoid compliance issues.
Conclusion: Transaction delays
While transaction delays can be frustrating, they're often the result of security measures and regulatory requirements designed to protect your assets.
By understanding the common causes of delays and following the troubleshooting steps outlined above, you can resolve most issues quickly or prevent them entirely.
If you continue experiencing unusual delays with your transactions, don't hesitate to contact CoinJar's dedicated support team, who can provide personalised assistance for your specific situation.
CoinJar
CoinJar is one of the longest-running cryptocurrency exchanges in the world. Since 2013, we’ve helped hundreds of thousands of people worldwide to buy, sell and spend billions of dollars in Bitcoin, Ethereum and dozens of other cryptocurrencies.
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