Just when you think you’ve got a handle on this whole virtual currency thing, you receive an email from e-wallet and bitcoin buyer/seller Coinbase warning you about using your account for online gambling purposes. First, you were restricted from transferring bitcoins using Circle, so you start using their partner, Coinbase, and now you’ve been informed that even that account may be suspended. Sound like you? Well, you’ve come to the right place for the lowdown on just what to do.
Most importantly, we must note that they are a US company based in San Francisco, California. With that said, naturally their every move is on the federal government radar. In the terms of use, gambling falls under the appendix for prohibited use and is classified as “Lotteries; bidding fee auctions; sports forecasting or odds making; fantasy sports leagues with cash prizes; internet gaming; contests; sweepstakes; games of chance.”
Games of skill fall under the section of:
Conditional Use
“Express written consent and approval from Coinbase must be obtained prior to using Coinbase Services for the following categories of business and/or use ("Conditional Uses").
…“Games of Skill: Games which are not defined as gambling under this Agreement or by law, but which require an entry fee and award a prize.”
Where does this leave you? Luckily LCB has some really savvy members. Using Coinbase is one step in the process. Purchase your bitcoins using it and keep a second e-wallet on hand to transfer balances and fund casino accounts. If your account is being monitored for suspicion of unauthorized casino activity, stop making gambling related transactions to avoid closure. For more and to give your feedback, check out the forum topic to read all about it.