It became known this summer that the exchange provides crypto transaction surveillance tools to the government. In this connection, many questions arose.
Coinbase, a popular digital asset exchange, is asked to report on government requests. The Electronic Frontier Foundation (EFF), a non-profit digital rights protection group from San Francisco, applied with this request to the platform.
According to EFF, Coinbase should regularly provide reports so that users could rely on the transparency of business. In particular, the documents must contain information on the number of government requests for the provision of data and information on their processing.
EFF representatives drew attention to the fact that users of digital asset exchanges value anonymity and pay attention to the way trading platforms interact with regulators.
Financial data, according to experts of the non-profit group, is “the most sensitive type of information.” Disclosing Coinbase’s actions and how the platform responds to government requests, the EFF team believes, will affect how users feel about the marketplace.
Coinbase is one of the largest digital asset exchanges. At the beginning of July 2020, information appeared on the network that the platform had sold tools for tracking crypto transactions to the US authorities – Coinbase Analytics. At the same time, the amount of the transaction was $ 46 thousand per year. The Block analyst Larry Chermak is confident that the low amount hides the desire of the Coinbase team to gain favor with the regulators on the eve of the IPO.
In the event that the exchange responds to the EFF’s request for reporting, platform users will be able to find out if the company is using their data without permission.
The experts of the organization compared Coinbase with another popular digital asset exchange, Kraken. The team of the latter, in their opinion, maintains a fairly open policy that allows those who wish to receive the necessary information about the company’s interaction with regulators.
The Electronic Frontier Foundation is a non-profit organization founded in 1990. The main task of its specialists is to protect civil liberties in the world of digital assets, as well as protect the privacy of users.