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Coinbase CEO commented ...

Coinbase CEO comments on blockchain data sale to US authorities
CONTENT

  • The head of the crypto exchange had to comment on the rumors, but it seems that it only got worse.

  • Coinbase has long been under fire for high fees and controversial tech interruptions.

  • Community urged to abolish commission as exchange profits from selling user data.

International consortium of news organizations developing transparency standards.

The exchange found itself under a flurry of criticism after a wave of rumors about the sale of an analytical blockchain tool to the US authorities.

Coinbase CEO commented ...

Brian Armstrong, Co-Founder of Coinbase, an American regulated cryptocurrency exchange, commented on rumors about the sale of analytical tools for tracking cryptocurrencies to regulators in the US.

Armstrong, in particular, notes that software focused on blockchain open data analytics is nothing new in the industry and is designed to detect transactions from attackers..

“Exchanges interacting with the traditional financial system … must follow the AML requirements, and this often includes the use of analytical software to monitor transactions on the blockchain,” Armstrong wrote on his Twitter page..

The head of a well-known American cryptocurrency exchange notes that the creation of an effective analytical blockchain toolkit is costly and, in order to recoup the expended resources, the exchange has to sell its services.

“It also helps us build relationships with law enforcement, which is important for the development of cryptocurrencies,” said Armstrong..

Survival policy

However, most of Armstrong’s comments did not find support among the cryptocurrency community..

Coinbase CEO commented ...

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A user with the nickname Mark Digitalis (@ Cryptoversity1) stated that if Coinbase profits from the sale of user data, then the company should provide its services free of charge..

“… Your transaction fees are outrageous and your business model is highly hostile,” added Mark Digitalis.

Another user with the nickname Raymond Durk (@RaymondDurk) said that the exchange should be clearer about its intentions, since only Coinbase can match a cryptocurrency address to an individual, since the exchange has all the KYC data.

“You are claiming that data is not passed on without a [court] order, which I believe but I would never say,” said Raymond Durk.

Money doesn’t smell

The scandal surrounding the intentions of the exchange to sell user data to the Drug Enforcement Administration (DEA) and the Internal Revenue Service (IRS) erupted in early June.

Then it was noted that specialists from the Coinbase Consumer, Coinbase Pro and Coinbase Custody divisions were involved in the development of the tool..

The wave of criticism is also based on the frequent disruptions of Coinbase, which goes to maintenance every time the price of Bitcoin moves $ 500..

Coinbase CEO commented ...

Against the background of the last technical break, the host of Keiser Report on the Russian channel RT, as well as former trader Max Kaiser, said that from a technical point of view, the exchange is nothing more than a technical “casino” that needs to be regulated accordingly..

What do you think? Will Coinbase’s partnership with the U.S. government help industry regulation grow in a friendly way? Share your thoughts with us in the comments and join the discussion in our Telegram channel.

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