Cryptocurrency exchange Coinbase is accused of collaborating with the Fed to provide a tool for cryptocurrency surveillance.
The collaboration of Coinbase with the FED and the US government aims to develop a control and surveillance tool that will allow the DEA and IRS investigate the different movements that take place within the world of cryptocurrencies. The tool that bears the name Coinbase Analytics; is a software that will allow authorities to track any transaction found within public blockchains.
In reference to this, there are already several public documents that reveal what this surveillance tool consists of. A tool that can threaten the privacy of users who carry out their transactions within the exchanges.
For its part, Coinbase assured that the data of the platform's users will be safe. The exchange's response seeks to calm the mood in the face of the strong criticism originated after this news was released. Likewise, it pointed out that the data obtained by the authorities comes from public information. With this, it argues that this data is not obtained from the information handled within the platform, highlighting that Coinbase Analytics does not provide personal or identification data of any user, regardless of whether they use Coinbase or not.
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Coinbase closes contract with the DEA
In relation to this tool, Coinbase closed a contract with the Drug Enforcement Administration, better known as DEA, which expires in April 2021. This contract establishes that the Coinbase Analytics software will offer this organization special tools and features that will provide identity attribution for various cryptocurrency addresses nationally and internationally. It also notes that this advanced tool will allow the DEA to verify on-site the various movements and transactions that are carried out with cryptocurrencies.
Although the details of these tools and features were not explained in the document, what is evident is the constant need and intentions of governments to violate user privacy. Let us remember that privacy is not a benefit that is granted or taken away by a particular government; rather, it is a right of all human beings.
The signing of this contract is certainly not a coincidence. It is no secret that several organizations and cryptographic firms have joined the FED's measures in search of closing million-dollar contracts with this entity. Thus, although the value of the contract is not known, the organization assured that it is one of the most economical tools on the market, also pointing out that this tool provides better capabilities and a "crucial distinction" to the organization to avoid false positives.
Crypto surveillance is not a new topic
Contrary to what many people think, Bitcoin is not completely anonymous. That is why governments and different surveillance entities can monitor most of the transactions and movements we make in this cryptocurrency. History repeats itself in the same way in the vast majority, except for a few exceptions such as Monero or Zcash.
Since the beginning of Bitcoin In 2009, authorities began to devise mechanisms that would allow them to monitor users of this cryptocurrency; and as the technology has been adopted and more cryptographic assets have been designed, the mechanisms have intensified. Likewise, an anonymous user and collaborator with several exchanges states that more of these mechanisms were implemented after the bankruptcy of the popular exchange. Mt. Gox.
Similarly, this user indicates that surveillance measures for cryptocurrencies meet different standards than those for financial movements on centralized platforms. In his experience, the United States government marks as “suspicious activity” or SAR report any money movement that involves more than $5.000 in cryptocurrencies. This is regardless of the activity the user is engaged in.
So, Coinbase's actions of collaborating with the FED and other government organizations are aimed at continuing this thread of surveillance and control tools. These actions have the sole objective of violating the confidentiality and personal privacy of our data and financial movements.
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