- The U.S agency intends to buy a license for Coinbase Analytics, a cloud-based software from Coinbase.
- According to the company, their data entirely derived from online public sources and doesn’t include personal details.
Cryptocurrency exchange platform Coinbase is allegedly planning on licensing its blockchain software to the U.S government. These government organisations include the Internal Revenue Services (IRS) and the Drug Enforcement Administration (DEA). This news caused a ripple of strong criticism among the cryptocurrency community.
According to The Block Report, the U.S agency intends to buy a license for Coinbase Analytics, a cloud-based software from Coinbase. The IRS and DEA announced this through documentation in April and May respectively.
A Coinbase spokesperson said that “The information provided by Coinbase Analytics always completely separate from the internal data of Coinbase.”
According to the company, their data entirely derived from online public sources and doesn’t include personal details. Moreover, their blockchain reportedly used for internal investigations on a global scale. Hence, this tool will only let the agencies access public data efficiently, and they cannot have any of Coinbase’s internal or customer information.
Information based on public documents about Coinbase Analytics (CA)
The DEA document states that the CA tool provides the official agency’s statistics about virtual currency addresses. Moreover, Coinbase’s Analytics known for its accuracy with attributes, including commercial blockchain tracking tools.
The DEA document further states that without this advanced tool, the agency cannot perform on-site verification of currency flow.
Coinbase has assured that its analytical data not connected to the data within its platform. However, people out there still worried about data confidentiality breach.
Results from Delete/Stop Using Coinbase poll:
Out of the 5000 responses that answered either Yes or No:
66% said "Yes" – they would be willing to delete or stop their Coinbase account
33% said "No" – they would not stop using Coinbase
Interested to see the long term results
— Josh Rager ? (@Josh_Rager) June 6, 2020
Additionally, Crypto trader Josh Rager quoted a Whale Alert tweet saying that 6,000 bitcoin had just transferred from Coinbase. Additionally, he wrote: “As we speak, Millions of dollars seem to be leaving Coinbase. Investors and traders are no longer limited to Coinbase or Bitmex”.