Score Breakdown by Category

How Coinbase's terms rate across my evaluation categories.

💰 Fund & Account Control (30%) 30/100

Why this score: Coinbase scores poorly due to: (1) indefinite "compliance" freezes with no time limit per Section 7.1; (2) 30+ day holds on account closure under Section 8; (3) no stated limits on reserve requirements. The r/CoinBase subreddit documents numerous cases of users waiting 6+ months during "investigations."

Industry comparison: Kraken: 50/100 (14-day withdrawal processing) | Gemini: 45/100 (NY trust protections) | Binance.US: 25/100 (history of access restrictions) | Category avg: 38/100

⚖ Dispute Resolution (20%) 35/100

Why this score: Coinbase mandates binding AAA arbitration with class action waiver (Section 11). No formal appeal process exists for account decisions. The Coinbase, Inc. v. Bielski Supreme Court case (2023) established that courts must stay proceedings during arbitration appeals.

Industry comparison: Kraken: 45/100 (arbitration, UK option available) | Gemini: 40/100 (NY regulatory oversight) | Binance.US: 30/100 (limited recourse) | Category avg: 38/100

👁 Transparency & Notice (20%) 45/100

Why this score: As a public company (NASDAQ: COIN), Coinbase provides relatively clear ToS language. However: (1) 30-day notice for changes can be waived "if not commercially reasonable"; (2) multiple product-specific terms create complexity; (3) staking terms are particularly opaque about slashing risks (see Staking Terms Section 4).

Industry comparison: Gemini: 55/100 (NY-regulated clarity) | Kraken: 50/100 (straightforward terms) | Binance.US: 35/100 (frequently changing terms) | Category avg: 46/100

🔒 Data & Privacy Rights (15%) 40/100

Why this score: Coinbase shares extensive data with blockchain analytics firms, law enforcement, and third-party partners per the Privacy Policy Section 3. Transaction history export is available but on-chain analysis means your activity is tracked even after export. CCPA/GDPR compliant with standard opt-out mechanisms.

Industry comparison: Kraken: 48/100 (clearer privacy policy) | Gemini: 45/100 (NY-regulated data handling) | Binance.US: 35/100 (extensive data sharing) | Category avg: 42/100

🚪 Exit & Withdrawal Rights (15%) 45/100

Why this score: Account closure is available but subject to 30+ day "holding period" per Section 8. Withdrawals can be delayed for "investigation" with no maximum timeline. Staked assets have additional withdrawal delays (unbonding periods). No early termination fees, but the indefinite hold risk offsets this benefit.

Industry comparison: Kraken: 55/100 (faster withdrawal processing) | Gemini: 40/100 (trust company delays) | Binance.US: 30/100 (restricted access periods) | Category avg: 43/100

Compare With Other Exchanges

⚠ Gotcha Clauses I Check First

These provisions have caused real financial harm to Coinbase users.

30+ Day Fund Holds on Closure

High Risk

When Coinbase closes your account, they can hold your funds for 30 days or longer. Combined with investigation delays, users report waits of months to access their crypto.

"You may cancel your Coinbase Account at any time...Upon cancellation, we will attempt to transfer your remaining balance within 30 days, subject to any applicable holding periods or restrictions." Coinbase User Agreement, Section 8

Indefinite Compliance Freezes

High Risk

Coinbase can freeze your account indefinitely for "compliance review" with no timeline. Users have reported freezes lasting over a year during "investigations."

"We may suspend, restrict, or terminate your access to any or all of the Coinbase Services...if we reasonably believe doing so is necessary." Coinbase User Agreement, Section 7.1

Mandatory Arbitration

High Risk

All disputes must go through binding arbitration. You cannot sue Coinbase in court or join class actions, even for systematic issues affecting thousands of users.

"You and Coinbase agree to arbitrate any and all disputes and claims...Arbitration on an individual basis. Class arbitrations and class actions are not permitted." Coinbase User Agreement, Section 11

No Staking Guarantees

High Risk

Staking rewards are not guaranteed. Coinbase can change or discontinue staking services at any time, and you bear all slashing risks.

"Staking rewards are not guaranteed. Staked assets may be subject to slashing penalties...We may discontinue Staking Services at any time." Coinbase Staking Terms

Complex Multi-Product Terms

Medium Risk

Different Coinbase products (Exchange, Wallet, Card, Earn) have separate terms. Users often don't realize the protections vary significantly across products.

"Certain Coinbase Services may be subject to additional terms...These additional terms will be disclosed to you and are incorporated by reference." Coinbase User Agreement, Section 1

Liability Cap at Fees Paid

Medium Risk

Coinbase's liability is capped at the fees you paid in the past 12 months. If they cause $100K in damages, your recovery is limited to trading fees.

"Our total liability...will not exceed the greater of $100 or the amounts paid by you to Coinbase during the 12 months prior to the claim." Coinbase User Agreement, Section 10

Analysis

"Coinbase's terms reflect the tension between being a regulated public company and serving crypto users who value sovereignty. The company has become increasingly aggressive with compliance enforcement, often freezing accounts based on algorithmic flags with minimal human review.

As the largest U.S. exchange, Coinbase faces intense regulatory scrutiny that translates into conservative enforcement. If anything about your transaction history looks unusual, expect delays. The 30-day hold on closure is particularly problematic—combined with investigation periods, I've seen users wait 6+ months to access their funds.

My advice: don't store significant assets on Coinbase long-term. Use it for on/off ramping to fiat, then transfer to self-custody. Keep meticulous records of your transaction sources. If your account gets frozen, respond promptly to any requests but understand the process can be slow."

Recent Coinbase News & Developments

Legal and regulatory developments affecting Coinbase users.

Jan 2025

SEC Lawsuit Against Coinbase Continues

SEC's lawsuit alleging Coinbase operates as an unregistered securities exchange proceeds to discovery phase. Outcome could reshape crypto regulation.

Dec 2024

Coinbase Settles NY Compliance Case for $50M

NYDFS settlement resolved allegations of compliance failures including inadequate transaction monitoring and KYC procedures.

Nov 2024

Coinbase Expands Self-Custody Wallet Features

New Coinbase Wallet features encourage users to move assets to self-custody, reducing exchange custody risks for users who opt in.

Jun 2023

Supreme Court Rules in Coinbase v. Bielski

Landmark ruling strengthened Coinbase's arbitration clause by requiring courts to pause lawsuits while arbitration appeals are decided.

Coinbase Terms Update History

Tracking verified changes to Coinbase's User Agreement based on documented regulatory and legal developments.

December 2024

NYDFS Settlement - Compliance Updates

Coinbase agreed to pay $50 million to settle NYDFS charges over inadequate transaction monitoring and KYC procedures. Terms updated to reflect enhanced compliance obligations.

June 2023

Supreme Court Ruling on Arbitration

The Supreme Court ruled in Coinbase v. Bielski that courts must stay proceedings while arbitration appeals are decided, strengthening Coinbase's arbitration clause.

June 2023

SEC Lawsuit Filed

The SEC filed a lawsuit alleging Coinbase operates as an unregistered securities exchange. Ongoing litigation may result in future terms changes.

April 2021

Public Company Disclosure Requirements

Coinbase went public via direct listing (NASDAQ: COIN), subjecting terms and risk disclosures to SEC public company requirements.

View All ToS Updates →

Coinbase Terms of Service Review

Score Breakdown by Category

Compare With Other Exchanges

⚠ Coinbase Holding Your Funds?

⚠ Gotcha Clauses I Check First

30+ Day Fund Holds on Closure

Indefinite Compliance Freezes

Mandatory Arbitration

No Staking Guarantees

Complex Multi-Product Terms

Liability Cap at Fees Paid

Analysis

Recent Coinbase News & Developments

SEC Lawsuit Against Coinbase Continues

Coinbase Settles NY Compliance Case for $50M

Coinbase Expands Self-Custody Wallet Features

Supreme Court Rules in Coinbase v. Bielski

Coinbase Terms Update History

NYDFS Settlement - Compliance Updates

Supreme Court Ruling on Arbitration

SEC Lawsuit Filed

Public Company Disclosure Requirements

Need Help With Coinbase?

Schedule a Consultation

Coinbase Terms of Service Review

Score Breakdown by Category

Compare With Other Exchanges

⚠ Coinbase Holding Your Funds?

Related Resources

⚠ Gotcha Clauses I Check First

30+ Day Fund Holds on Closure

Indefinite Compliance Freezes

Mandatory Arbitration

No Staking Guarantees

Complex Multi-Product Terms

Liability Cap at Fees Paid

Analysis

Recent Coinbase News & Developments

SEC Lawsuit Against Coinbase Continues

Coinbase Settles NY Compliance Case for $50M

Coinbase Expands Self-Custody Wallet Features

Supreme Court Rules in Coinbase v. Bielski

Coinbase Terms Update History

NYDFS Settlement - Compliance Updates

Supreme Court Ruling on Arbitration

SEC Lawsuit Filed

Public Company Disclosure Requirements

Need Help With Coinbase?

Schedule a Consultation