Coinbase Helps the US Government Combat Illegal Trade

One startup unicorn cryptocurrency, Coinbase, reportedly provided assistance to the United States government through partnerships with the Drug Enforcement Administration (DEA) and the United States Reveneu Service (IRS).

This is a collaborative project involving DEA and IRS, as well as other companies, such as Chainalysis, Elliptic, CipherTrace who took part in this project to help the United States government fight against the abuse of cryptocurrency for illegal transactions.

Where, Coinbase as one of the largest cryptocurrency exchanges in the world, created a blockchain cloud platform to track cryptocurrency movements and find transaction data related to who is the recipient. This needs to be done, because cryptocurrency itself has the potential to be misused as a means of payment for illegal transactions.

The platform created by Coinbase is called “Coinbase Analytics” which serves to prevent drug trafficking, money laundering and reduce cryptocurrency users for illegal transactions on illicit sites.

Some of the experts involved in the Coinbase Consumer, Coinbase Pro, and Coinbase Custody projects were also involved in creating Coinbase Analytics, which was estimated at an early stage requiring a development cost of up to $ 250,000.

According to the Drug Enforcement Administration (DEA), Coinbase Analytics includes a conservative heuristic method that can help accurately track cryptocurrency drives. One of the most popular cryptocurrency used as a means of payment when transacting for illicit sites is Bitcoin, based on analysis from the Crystal analysis platform.

Even in Russia, there have been regulatory plans for anyone who uses cryptocurrency for illegal activities to be sentenced to a sanction of $ 27,800 and a prison sentence of up to 7 years.

Both in the United States and Russia who both want to fight cryptocurrency misuse for illegal transaction activities. Surely, it will cause pros and cons among cryptocurrency business people in the country.

Where, the two countries could lose the interest of cryptocurrency investors who want to invest through a number of startups there. Then, there will be many cryptocurrency startups who prefer to leave the country and move to more friendly countries related to the applicable cryptocurrency regulations.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *