Cryptocurrency Complaints Continue to Upsurge This YearApril 6, 2018
Consumer Protection Agencies received lots of complaints regarding cryptocurrency. And the number of protests and complaints continues to rise in just a matter of months.
Because of Bitcoin’s unregulated nature and a lot of agencies working in the crypto space, there’s a little option available for clients who fall prey to frauds or experience loss of money because of operational problems and closures of account on trading companies. However, this doesn’t mean that consumers haven’t tried. CPA or Consumer protection companies all over the world have seen a remarkable leap in complaints associated with cryptocurrency since Bitcoin hits its highest price ever at the last quarter of the year.
ValuePenguin, a reliable consumer research agency reported that the complaints obtained by the United States Consumer Financial Protection Bureau or CFPB over problems with Coinbase, premier digital currency exchange augmented to a large extent as the bitcoin price increased to $20,000 last year to less than half that rate in February.
The report analyzed protests from 1st of June last year to 1st of March this year, and discovered that these protests on Coinbase services poured the most when the price of Bitcoins drops. At this serious time, consumer complaints confirm that customers of Coinbase struggled to trade and transfer their digital currency with extended delays in the transaction. What is more, customer support of Coinbase was also overwhelmed. According to numerous clients, they find it hard to obtain explanations from the company regarding the matter.
Money wasn’t available as promised has the highest complaints with 40% of the consumers, 20% complaints on other transaction issue, managing, opening as well as closing mobile wallet account, 11.7% on fraud or scam, 7.9% on other service issue, and 12.0% on other complaints.
The number of complaints surged when the Bitcoin price began to plunge to a large extent in January and first week of February this year. While some may recommend that customers were just complaining due to their lost money because of the dropping of price of Bitcoin, the truth is that Coinbase got a considerable inflow of new consumers during last quarter of 2017. This is the main reason for the occurrence of operational problems that are mirrored in the breakdown of the top 5 common complaints made opposed to Coinbase.
The failure to bring funds promptly, service problems, and other transaction and issues with the application made up 76.3% of the entire complaints got by the Consumer Financial Protection Bureau, which shows that Coinbase has an issue in handling this growing number of users and big trading volumes generated by the dropping of Bitcoin price.
There is also a complaint in the alterations in the processing of credit card last week of January and the first week of February, because of the significant modification in Merchant Category Codes. The modifications saw a lot of users charged the wrong way — as proof and facts by this statement on Coinbase twitter feed.