Posts

Coinbase: The NSA of Crypto

avatar of @asteroids
25
@asteroids
·
·
0 views
·
2 min read

Source:

I've never trusted crypto exchanges and I never will.

There are many reasons for not trusting these exchanges, chief among them is surveillance. One of the primary features of crypto is the escape of continual infringement on personal data.

When it comes to my holdings, I don't want to see the IRS or any other agency have access to my data. I don't want them to know where my holdings are or how large they are and I don't want them to see everything I do.

"The behemoth cryptocurrency exchange has initiated procurement deals with the Drug Enforcement Administration (DEA) and the Internal Revenue Service (IRS) for a cryptocurrency investigations tool called “Coinbase Analytics,” according to publicly available documents. The Block first reported on the prospective deals Friday."

"It was unclear at press time Friday the extent to which Coinbase Analytics utilizes internal customer data."

There is a false dichotomy here. Many people in crypto (especially those who haven't dug deep enough into the space) don't realize that they can actually give up more data if they aren't careful.

Blockchains are transparent and open. Which means that anyone can see the entire history of a public address.

If you, for example, buy BTC on Coinbase and then send it to a hardware wallet then Coinbase now knows your public address on your hardware wallet.

Now every transaction you make from that ledger is tied to your real identity.

If you were ever investigated for anything crypto-related, they would have all the data from your ledger.

In other words: your privacy has dissapated and your personal rights have been infringed upon. In some cases, a higher level of privacy isn't necessary, but in many cases it still makes sense to take certain steps.

Lucky for us, there are smart people out there in the crypto development world who are continually making improvements to the broader ecosystem and adding privacy features like coinjoining, mimblewimble and more. There are always improvements being made and I think we need to stay educated and stay aware as to how companies like Coinbase work with government agencies like the U.S. DEA to infringe on our private right to our data.

Posted Using LeoFinance