The main problem, but not the only one since the company has had multiple service cuts due to problems with the flow of users, is that Coinbase has announced that it will sell its cryptocurrency analysis and surveillance software, called “Coinbase Analytics” to two United States government agencies.
According to the statement, the two agencies will be the Drug Enforcement Administration (DEA) and the Internal Revenue Service (IRS) that software provides an instant strangulation between the address of the Cryptocurrency Wallet and the name of the person who could be behind it.
This would have a reach not only within the United States, but throughout the world.
Customers stop trusting Coinbase
The technology that gives life to Bitcoin, and all cryptocurrencies, is the Blockchain. This can be both completely public in which the date, the shipping and receiving address and the amount of each transaction are recorded in your book, as is the case with Bitcoin and most cryptocurrencies.
This characteristic of public Blockchain, of the freedom and privacy that cryptocurrencies grant is one of the fundamental philosophies of the world of cryptocurrencies.
But, it is undoubtedly a double-edged sword, since many companies that make life in certain territories, such as Coinbase in the United States, have to adapt to regulations in order to function, and one of them is to provide personal information about their clients when be necessary.
As this philosophy is violated in one way or another, cryptocurrency users will always be betrayed, because it is not in accordance with the fundamental foundations of the world. Although on the other hand, it is necessary to avoid possible financing of terrorism or some other illegal act. This will always be the eternal debate in the world of cryptocurrencies.
Clients close their accounts on Coinbase
San Francisco-based cryptocurrency exchange Coinbase has seen a backlash from its users.
“If you use Coinbase, you should delete your account”, It is one of the most repeated opinions on social networks.
These security concerns and the recent service outages they experienced have caused Coinbase customers to withdraw a near-record amount of Bitcoin from the company.
Coinbase users withdrew 22,000 Bitcoins, worth more than $ s214 million in a few weeks.
But, this is not all, because according to recent reports, two thirds of customers are willing to withdraw all their money from Coinbase and close their accounts after this “Betrayal”.
Given this important situation, the team of the important crypto exchange had no other option to give statements to throw water on the fire.
“This tool only gives them simplified access to publicly available data on the Blockchain. At no time do they have access to Coinbase’s internal or customer data.”the company said.
Coinbase denies that it is selling personal user data. But, past stories from similar cases demonstrate that this is possible bogus, and user data could be in the hands of U.S. regulators.
This situation has once again revived the privacy vs. security debate. In which of the two spheres are you?
I learned all about cryptocurrencies: Click and watch the free conference “The 3 Crypto Secrets”.