The crypto exchange Coinbase denies rumors that the trading platform sells customer data to the American customs and immigration authorities. The United States Immigration and Customs Enforcement (ICE) agency is under the Department of Homeland Security.
At the end of last week, it was first reported that Coinbase probably provides geodata and transaction data to ICE. Accordingly, the users of the platform were shocked on social media, so a Twitter user says vicariously that he did not agree to this.
Now why would they be doing that? So basically invasion of privacy. Sells with out knowledge? They will be owning me 10 million for that one. I didn’t sign up for that. What the hell could this be real or false. So much running through my head right now.
– Solobase Mac (@Blacktalizman) June 30, 2022
However, Coinbase has since clarified that the crypto exchange “does not sell private customer data”. Rather, the trading platform has made it a top priority that users can trade cryptocurrencies safely and carefree.
The data collection program Coinbase Tracer, which has come under criticism, would therefore only be used within the framework of legal requirements. Above all, it would prosecute illegal activities such as money laundering or terrorist financing, which the crypto exchange must investigate. All data that the crypto exchange passes on to the American authorities would be publicly visible anyway, confidential data, on the other hand, would not be passed on.
Interestingly, Coinbase had signed a contract with ICE in September 2021 to develop software for the authority. The contract is worth a total of 1.36 million US dollars.
Despite the bear market, Coinbase wants to expand to Europe soon. For this purpose, the crypto exchange is already hiring new employees in Switzerland, and the trading platform already has approvals in countries such as Germany, Ireland and the United Kingdom.
However, bad news for the crypto company is that the influential rating agency Moody’s has recently downgraded the company’s creditworthiness, as the Coinbase’s business model is largely dependent on developments in the crypto market.
