Can My Blockchain Wallet Be Blocked?

2/8/2023, 5:43:11 AM - Shegs Aliu
Can My Blockchain Wallet Be Blocked?

Regarding the use of blockchain wallets, a lot of people usually ask questions such as…

Can my blockchain wallet be blocked?”,

“Can I be restricted from using my blockchain wallet address?” and many more.

In this article, I will provide you with an answer to these questions. Keep Reading!

Key Takeaways

• Blockchain wallets are linked to the public ledger or blockchain. This means that no central body has control over it.

• Blockchain wallets on cryptocurrency exchanges are referred to as custodial wallets which means your wallet is stored and managed by the exchange while maintaining your privacy.

• Blockchain wallets do have not private keys. You are only assigned a unique wallet address.

• Suspicious activities on a blockchain wallet could lead to blockage by an exchange.

SEE ALSO: 12 Best Crypto Custodial Wallets Right Now

SEE ALSO: Are Blockchain Wallets Non-Custodial?

SEE ALSO: Can a Hardware Wallet Truly Get Hacked Without PINs?

Can my blockchain wallet be blocked?

No central body has control over your blockchain wallet just like the banks have control over checking accounts.

However, there are reasons why a blockchain wallet could get blocked.

Can My Blockchain Wallet Be Blocked?

Crypto exchanges such as Binance or Coinbase can sometimes block or restrict blockchain wallet accounts linked to certain addresses for some reason.

For example, Coinbase can block accounts and transactions involving individuals or entities that are under international probes or sanctions. Usually, this is an isolated case.

Another reason is when there is a crypto heist, involving a mass attack or hack into the vault of an exchange.

Some of the reasons why one of the world’s largest cryptocurrency exchanges, Binance, can restrict your blockchain wallet from transacting include:

  • As an individual, you are politically exposed, i.e., a high-ranking person in government who can easily attract bribery to promote corruption.

This is not allowed on Binance to prevent such individuals from laundering money through its exchange platform because crypto has become the new tool for siphoning funds.

  • If you breach their terms and conditions, the company has the right to freeze your accounts without notifying you or seeking your consent. It can also close your order request and report your wallet accounts to authorities.
  • Your account can also be shut down or frozen upon a court order relating to pending litigation or criminal investigation.
  • Unauthorized access to your account by a third party can also cause Binance to shut down your account.

Frequently Asked Questions (FAQs)

Q1. Can Blockchain wallet be hacked?

The concepts behind the blockchain technology that powers the blockchain wallet make it nearly impossible for the wallet to be hacked.

However, certain factors outside the domain of the blockchain can cause a blockchain to be hacked, such as allowing strangers to get hold of your seed phrase and, by so doing, allowing them to steal your assets.

Q2. What is the most secure blockchain?

The bitcoin blockchain is known as one of the most secure blockchains.

Q3. How do I recover my Blockchain wallet?

You can recover your wallet by following the steps below;

Step 1: Log in to your Wallet.

Step 2: Tap on the Menu icon.

Step 3: Select Settings.

Step 4: Tap Backup Phrase in the Security section.

Step 5: Tap View Recovery Phrase.

Step 6: Write down your 12-word recovery phrase exactly as it appears and in the proper order. When you are done, tap Next.

Step 7: Confirm your phrase by entering the random selection of three recovery phrase words.

Step 8: Enter the correct words and tap Verify.

Q4. Can someone steal your crypto if they have your wallet address?

No, no one can access your wallet and, as a result, steal your assets by using your wallet address because wallet addresses are meant to be shared with anyone from whom you might want to receive some cryptocurrencies.

Final Thoughts

No government or individual can block your blockchain wallet because of its decentralized technology architecture.

However, this is not so for cryptocurrency exchanges which can restrict your wallet account from making any form of transactions if they notice any irregularities with the account or you breach their code of conduct.

So you have to be cautious with what you do with your blockchain wallet on these exchanges.

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