CoinsBank describes its business model as “the blockchain bank of the future.” Unlike traditional centralized cryptocurrency exchanges, CoinsBank tries to combine a variety of services, such as buying, selling, transferring, and storing cryptocurrencies. That is why the team behind the project refers to CoinsBank as a financial institution, rather than just an exchange.
CoinsBank is operated by the company CB Exchange OU, registered in Estonia under the following license numbers: FVR000373, FRK000518. The official address of the entity is Punane 56, Tallinn, Estonia, 13619. The platform was founded in 2013 and, at the time of this writing, is headquartered in Edinburgh, Scotland.
The exchange’s website doesn’t feature a section about the business and its management. Unfortunately, the platform’s team on LinkedIn also is very limited, featuring just a few profiles of individuals at the position of “Event Manager”. This doesn’t help us track the founders of the platform. If the information on CoinsBank’s profile in the professional network is to be believed, the exchange employs from 50 to 200 employees which ranks it among the bigger cryptocurrency-related businesses.
However, while browsing the articles on the website, we find the name of Vitaly Andrusevich, CEO of CoinsBank. Unfortunately, though, this figure is nowhere to be found on the Internet and there is no information about his experience.
CoinsBank offers several services. The main one, understandably, is the exchange business. CoinsBank claims that it is a licensed exchange that offers real-time order management, suitable for professional and beginner traders. Further research points out that CoinsBank works in close cooperation with a FOREX dealer (the licensed part of the business) which allows it to offer cryptocurrency and fiat transactions. According to the information on its website, “all traders are protected by the laws and regulators of Belize.” To be eligible to trade, users aren’t required to upload any documents.
CoinsBank also provides a wallet service. At the time of this writing, it supports Bitcoin and Litecoin, alongside with payment systems like Qiwi, OKPay, EPay, and PerfectMoney. According to CoinsBank’s information, the wallet is protected by two-factor authentication and employs international PCI DSS certification «Cold» (offline) wallets.
The platform also offers six types of bitcoin debit cards. They allow users to make purchases in cryptocurrencies and fiat by allowing for direct conversion in dollars, pounds, and euros. CoinsBank’s cards also support daily cashback bonuses for every cent spent. However, at the time of this writing, the cards’ feature is temporarily unavailable.
CoinsBank also offers a merchant solution that aims at easing cryptocurrency adoption within sellers. It helps merchants easily accept payments in digital currencies and provides buyers with more options to use their cryptocurrencies.
In order to help navigate all the services it offers, CoinsBank has developed Android and iOS apps that help monitor trading accounts, manage cards, process payments, and conversions.
The company also tries to take an active position in the popularization of the mass adoption of cryptocurrencies and blockchain technology. In an effort to achieve this, CoinsBank organizes a variety of different events. The most popular one is the CoinsBank Blockchain Cruise – an organized trip where blockchain professionals and enthusiasts meet to exchange ideas and discuss the future of the technology.
A significant downside of CoinsBank is its limited customer support channels. Aside from social media, the company offers only a ticket system. Considering all of CoinsBank’s services and judging by the user reviews, it seems to be insufficient. Although the exchange’s representatives try to address some of the users’ complaints on Bitcointalk, the answers they post are in broken English and doesn’t seem to instill credibility. Most of them are focused on defending the reliability of the exchange and the integrity of its services.
Although CoinsBank tries to build credibility and instill transparency by engaging in various events and initiatives and providing detailed information about its business and services, the reputation among the online community is firmly negative. Reviews of clients on Trustpilot reveal one widespread problem. CoinsBank charges its clients with a so-called “inactivity fee” which had lead to numerous users losing the funds, deposited on the platform, due to their lack of trading activity. According to several users’ reports, the inactivity fee is €50 per month. It is essential to say that CoinsBank had listed the fee on its website, although it was soon after it had already started charging it. A significant number of users also express their frustrations about the speed and reliability of the system, as well as the inability to withdraw their funds. Some clients report for hidden account closure fees ranging from €20 to €200. In general, at the time of this writing, there are plenty of articles and threads from users who describe CoinsBank as a scam scheme.
At the time of this writing, there are no reported cases of hacker attacks or governmental investigations, targeted at CoinsBank.