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It doesn’t matter, Coinbase, Big Brother is already looking at your coins

June 15, 2020

The cryptocurrency exchange will take place on June 5 Coinbase has come under fire for its alleged efforts to sell crypto-surveillance services both the United States Drug Control Administration and the Internal Revenue Service.

In the following days the Representative of Coinbase have clarified that The company’s analytics services do not share personal information with law enforcement agencies. They claim that they get all of the data from publicly available information.

Big Brother has been watching for almost a decade

Although the Coinbase rejection may contain some truth, a source that has worked with the regulations for crypto exchanges and ATM companies for Bitcoin has told Cointelegraph Several government agencies have been actively monitoring users at almost all central intermediary and crypto-custody service providers for years.

It doesn’t matter, Coinbase, Big Brother is already looking at your coinsIt doesn’t matter, Coinbase, Big Brother is already looking at your coins

On the condition of anonymity, this source stated that The crypto-monitoring tactics go back to the early days of Bitcoin. They said that these practices became a much broader effort after the very famous Mt. Gox incident in which 850,000 BTC disappeared In late 2013, it was a popular cryptocurrency exchange.

Our source explained:

“I’ve worked for crypto exchanges, Bitcoin ATM companies, crypto service providers in general, and more. They all participate in surveillance practices. They have no choice.”

In terms of user control, they identified the US government’s preferred method of doing so, which is known as a Suspicious Activity Report or SAR. While SARs are common in most money transfer companies, SARs in crypto seem to work under different standards. I announce this:

“In traditional institutions, in most cases, a transaction has to meet certain criteria to be classified as suspicious, but this doesn’t always apply to Bitcoin and other cryptocurrencies. As far as the government is concerned, the ‘suspicious’ threshold is reached once the cryptocurrency is affected. “.


“”Custodians are required by law to submit suspicious activity reports (SARs) for virtually every transaction [sospechosa] related to cryptocurrency that exceeds $ 5,000, regardless of other user activities. Many report lower amounts. It is legally prohibited for companies to pass this notification data on to users or members of the public“We cannot tell you that we have ever submitted a report about you. And companies cannot refuse to follow these reporting tactics, as they will lose the licenses that allow them to operate. You could be fined or even jailed calculate. “

Who are you and what do you want to know?

When asked which agencies are most interested in user crypto data, our source found that “The reports are shared with FinCEN, the IRS, the FBI, and various federal law enforcement agencies. This covers the entire area“”

And it’s not just about law enforcement in the US:

“I’m sure it’s the United States, China, Japan, Russia, the United Kingdom and others. It depends on where you are. But almost all the world powers have legal methods to check centralized user data.”

Our source also found that the information requested was fairly robust. Agencies want to know:

“What currencies do you have, how often do you trade, the original source of funds used to buy crypto, the amount of profits you made in a given period of time? You can order anything and do it. You track it If your coins are kept in the refrigerator, there is a good chance that an office in one or more governments around the world will know this wallet address. No matter where you move them, if a central exchange ever saved these coins, they can track you. “.

Are they watching you

So how do you know if you’re one of those who have been (or are being) observed by a government agency? This is an incredibly simple question that, according to our source, can be answered: “If you have ever entered AML information, there is a good chance that someone requested the data. Monitoring crypto users is the goal of AML and KYC. Why do you think places collect this information when they register? You are being watched. “

Although the services cannot legally notify their users that they have submitted activity reports, there appear to be signs that people can monitor:

“Frozen accounts or funds”. If you had access problems that prevented you from accessing your account. This probably means that you have been the subject of a suspicious activity report without your knowledge. Or a government agency may have requested information about you or your funds. In this case, you can’t proceed until your review is complete. “

Can you avoid surveillance?

Blockchain participants operate in an industry that is largely based on the ideals of individual sovereignty and privacy. There are numerous projects in this area that are working to create decentralized variants of the popular crypto service offerings. When it came to avoiding government demands for global surveillance, our source was clear:

“Decentralized exchange and data protection currencies are the only answer I know of. Use centralized services at your own risk“”

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