Coinwase is a cryptocurrency broker that claims to offer a variety of services, including trading, staking, and margin trading. However, there are a number of red flags that suggest that Coinwase is a scam.
Company Overview
Coinwase is a relatively new company, founded in 2022. The company’s website does not provide any information about its team or founders. The only contact information on the website is an email address.
Coinwase offers a limited number of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. The company also offers a variety of trading features, but the fees are not disclosed.
License and Regulations
Coinwase is not licensed or regulated by any financial authority. This is a major red flag, as it means that the company is not subject to any oversight or protection for consumers.
Why Dealing With An Unlicensed Broker Is Risky?
There are a number of reasons why it is risky to deal with an unlicensed broker. First, unlicensed brokers are not subject to the same financial regulations as licensed brokers. This means that they are more likely to engage in fraudulent or unethical practices.
Second, unlicensed brokers are not required to keep client funds in segregated accounts. This means that there is a risk that your funds could be lost if the broker goes bankrupt or disappears.
Third, unlicensed brokers are not required to provide customer protection measures, such as negative balance protection. This means that you could lose more money than you deposited if you trade with an unlicensed broker.
Legal Warning Against Coinwase
The Financial Conduct Authority (FCA), the UK’s financial regulator, has issued a warning against Coinwase. The FCA warns that Coinwase is not authorized to provide financial services in the UK and that it is likely to be a scam.
You also can go through our other scammer lists such as the SEC Blacklisted Companies, FCA Unauthorised Firms List, ASIC Blacklisted Companies, & Bank Guarantee/SBLC Review.
Client Feedback
There are a number of negative reviews about Coinwase online. Some users have complained about the platform’s high fees, poor customer service, and difficulty withdrawing funds.
One user wrote: “I deposited $1000 into Coinwase and tried to trade Bitcoin. However, I was only able to make a few trades before my account was frozen. I tried to contact customer support but they never responded. I eventually gave up and lost all of my money.”
Another user wrote: “Coinwase is a scam. They took my money and refused to give it back. I filed a complaint with the FCA but they haven’t been able to help me yet.”
Feedback About Their Trading
The trading platform offered by Coinwase is not user-friendly and the fees are high. There have also been reports of the platform being hacked.
Feedback About Their Customer Service
The customer service at Coinwase is slow and unresponsive. There have also been reports of customer service representatives being rude and unhelpful.
How Can “Reviews Advice” Help You If You Get Scammed?
If you have been scammed by Coinwase or any other cryptocurrency broker, there are a few things you can do. First, you should contact your bank and report the fraud. You should also file a complaint with the FCA.
You can also seek help from a financial recovery company. These companies specialize in recovering funds from scammers. Reviews Advice can help you in recovering the lost funds by providing some recovery service recommendations that can help you.
Final Thought
Coinwase is a scam broker that should be avoided. If you are thinking about trading cryptocurrency, it is important to do your research and only use a regulated broker.
If you are looking for a safe and secure way to trade cryptocurrencies, we recommend that you avoid Coinwase. There are many other legitimate brokers out there that offer better services. Do your research and choose a broker that is regulated and has a good reputation.
