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Coinbase is apparently going to be offering the U.S. Secret Service a new blockchain analytics solution that would allow the governmental agency to track illicit activity until 2024. The information was recently released by The Block.
Coinbase to Work With the U.S. Secret Service
Coinbase continues to expand the services that it is offering. In this case, the goal is not to offer better solutions to users, but instead, to help the U.S. Secret Service to analyze blockchain data and information from virtual currencies, users and wallets. As the public report released, the contract had a price of $183,750.
Governments, organizations and other companies are using the services provided by cryptocurrency companies in order to get accurate blockchain information. This can be later used to track criminal activities, money laundering, and many other things. However, this also represents an increasing threat to individuals’ privacy.
It is also worth taking into consideration that Coinbase acquired the analytics firm Neutrino back in 2019. After this acquisition, users suggested the company wanted to track even further the way in which users handle cryptocurrencies and how they use them once they leave the exchange or before arriving at the platform.
Coinbase is currently providing crypto-related services to users, including trading solutions, staking and more. It became one of the largest platforms to handle digital assets due to its user-friendly interface and no-fee withdrawals from the Coinbase Pro platform. Despite that, many crypto enthusiasts have been criticizing Coinbase due to the large contact it had with regulatory agencies in the United States and other countries.
The Block reported that Coinbase Analytics data is sourced from publicly and available data while personal and identifiable information remains protected. In addition to it, Coinbase mentioned about their analytics tools:
“Coinbase Analytics is a blockchain analytics product that we use internally for compliance and global investigations. It is an important tool to meet our regulatory requirements and protect our customers.”
Other exchanges have been offering better solutions to users and to protect their privacy rather than working with authorities. Nonetheless, in the future, this may become somehow difficult. Regulatory agencies are requiring exchanges and other crypto companies to be compliant with all the rules imposed.
Failing to be in line with these regulations may cost exchanges a lot of money considering they could be shut down, closed, or even pay fines for their lack of compliance.