COINSPACE Crypto Exchange Review: Is It Safe or a Scam?

When you see a crypto exchange promising zero fees and free wallet storage, it sounds too good to be true. That’s exactly what COINSPACE claims. But behind the smooth interface and bold marketing lies a dangerous reality: this platform isn’t regulated, users are getting hit with hidden fees, and financial regulators have already flagged it as risky. If you’re thinking about using COINSPACE, you need to know the truth before you deposit any crypto.

COINSPACE Isn’t Regulated - And That’s a Major Red Flag

Most trustworthy crypto exchanges - like Coinbase, Kraken, or Binance US - are licensed and monitored by financial authorities. They follow strict rules to protect your money, verify your identity, and handle disputes fairly. COINSPACE doesn’t do any of that.

BrokerChooser, a well-known platform that analyzes broker safety using global regulator warning lists, explicitly states that Coinspace Ltd is not regulated by any top-tier financial authority. That means if something goes wrong - your funds get frozen, the platform disappears, or your account gets hacked - you have almost no legal recourse. No government agency will step in to help you recover your assets. And that’s not speculation. This is based on official data from regulators in the U.S., U.K., Australia, and the EU, all of which have issued warnings about unregulated crypto platforms like this one.

The "Zero Fees" Claim Is a Lie

COINSPACE’s website says: "We don’t have any transaction fees. Store and hold your money for free." It sounds perfect, right? But real users have exposed the truth.

One user, Paul, tested this claim in January 2021. He sent Bitcoin out of the COINSPACE wallet and compared the fee shown in the app to the actual miner fee recorded on the blockchain. The difference? The app charged him 0.00258 BTC extra - a fee that wasn’t disclosed anywhere in the app or on their website. That amount of Bitcoin was worth more than a hardware wallet. He ended up paying more to use COINSPACE than he would have if he’d just bought a Trezor or Ledger upfront.

This isn’t an isolated case. Multiple users report similar surprises when withdrawing. The platform hides fees in plain sight, making it look free while secretly taking a cut. That’s not a bug - it’s a business model built on deception.

Positive Reviews Are Few and Far Between

You’ll find some glowing reviews on BitTrust.org, where COINSPACE’s wallet service has a 4.09/5 rating based on 22 reviews. Sounds good? Not when you dig deeper.

The few positive comments come from users who only used the wallet to hold crypto and never tried to withdraw. Gregory L. Fuller, for example, says he never had issues with withdrawals - but he doesn’t mention fees at all. That’s telling. People who get burned usually don’t stick around to leave reviews. Those who do leave good reviews often haven’t tested the platform’s real functionality.

Compare that to Coinbase, which has over 100,000 verified reviews with detailed feedback on fees, support, and security. COINSPACE’s tiny review base and lack of transparency suggest it’s not a real, widely-used platform - it’s a low-effort operation designed to collect deposits and vanish.

Security Risks Are High - No Cold Storage, No Backup

COINSPACE markets itself as a "one-stop wallet and exchange," claiming you don’t need a separate cold storage device. But that’s exactly the opposite of what security experts recommend.

True security means keeping your crypto offline. COINSPACE holds your keys. That means they control your funds. If their servers get hacked - and there’s no evidence they’ve ever been audited - your crypto is gone. No insurance. No recovery. No backup.

Even worse, there’s no public information about their security protocols. No two-factor authentication details. No multi-signature wallets. No proof of reserves. Nothing. That’s not a platform - it’s a black box.

Why COINSPACE Isn’t Listed Anywhere

If COINSPACE were a legitimate, reliable exchange, it would show up in every "Best Crypto Exchanges of 2025" guide. It doesn’t. Not on CoinMarketCap. Not on CoinGecko. Not on Trustpilot. Not even on major crypto news sites.

FxVerify has a page for it - but it’s empty. No ratings. No user comments. No technical breakdown. Just a placeholder. That’s not an oversight. That’s a signal. Reputable review sites avoid covering unregulated platforms because they know the risk to their readers.

Meanwhile, platforms like Kraken and Gemini are regularly reviewed, compared, and updated. They publish annual security audits. They list their regulatory licenses. They respond to user complaints publicly. COINSPACE does none of that.

What Happens If You Deposit With COINSPACE?

Let’s say you ignore the warnings and send $500 worth of Ethereum to COINSPACE. Here’s what could happen:

• You can’t withdraw because the platform suddenly "updates its system" - and your funds get stuck.
• You try to cash out, and they charge you a hidden fee that eats up 15% of your balance.
• Your account gets hacked, and since they don’t have insurance, you lose everything.
• The website vanishes overnight, and you can’t even find their contact info.

There’s no customer support team you can call. No email address that gets answered. No physical address listed. No legal jurisdiction you can sue in. This isn’t a company - it’s a digital shell.

Alternatives That Actually Protect You

You don’t need to risk your crypto on a platform with zero oversight. Here are three trusted alternatives:

• Coinbase: Regulated in the U.S., supports 235+ coins, transparent fees (0%-3.99%), insured custodial wallets.
• Kraken: Licensed in multiple countries, 350+ cryptocurrencies, fees as low as 0.16%, regular security audits.
• Bitstamp: Founded in 2011, regulated in the EU, offers cold storage, no hidden fees, strong track record.

All of these platforms have clear terms, public support channels, and regulatory compliance. You can verify their licenses. You can read their audit reports. You can trust them with your money.

Final Verdict: Avoid COINSPACE at All Costs

COINSPACE isn’t just risky - it’s dangerous. The lack of regulation, hidden fees, no security transparency, and absence from credible review platforms all point to one conclusion: this is a scam waiting to happen.

The promise of free crypto storage is a trap. The real cost isn’t in transaction fees - it’s in the loss of your life savings.

If you’re new to crypto, start with a regulated exchange. If you’re experienced, use a hardware wallet. Either way, stay away from COINSPACE. Your crypto - and your peace of mind - will thank you.