Locked Out of Coinbase: Why Are Wyoming's Bitcoin Users Still Waiting?

For over two years, Coinbase users in Wyoming have been unable access their cryptocurrency.

Finding the requirements too challenging and costly to comply with, Coinbase pulled out of the state.

From lackluster uptimes to disabling the accounts of customers on vacation, Coinbase has struggled to keep its reputation clean from its user's standpoint - even after its $100 million raise in August.

In Wyoming, former users of the exchange are driving hours to attend the coalition's meetings to share their Coinbase horror stories.

While Coinbase hasn't given the word of when it might reopen services to Wyoming residents, the state banking commissioner, Albert Forkner told CoinDesk that Coinbase representatives have expressed excitement about the prospect of returning to the Cowboy State.

Plus, Coinbase users in Hawaii and Minnesota have also been cut off from their accounts, thanks to similar state regulations.

Unlike most personal wallet platforms, which store private keys on the user's phone or browser, Coinbase holds these keys on users' behalf.

It's more convenient, definitely, since all users need to access their money is their Coinbase login, which if lost or forgotten can be reset like a normal password.

Whereas many see bitcoin as an alternative to the traditional financial industry, using third-party services like Coinbase's feels merely like the same service with a different name.

"If you are going to keep your bitcoin in a third-party custodian that has control of your bitcoin, you haven't really improved your situation. I think most Coinbase users don't understand that."