Coinbase, the largest cryptocurrency exchange in the US, was reportedly selling Geo Tracking data of its customers to the government. It allows the authorities to trace transactions via the blockchain and track users. This not only hinders their privacy but makes you question whether the exchange is trustable. However, Coinbase responds by saying that do not sell customer data after the unverified reports were going out of control.
Coinbase responds to the reports of them selling customer data
Before we go ahead and discuss the allegations and the exchange’s response, let’s see why this is a big deal. Ultimately, we all know user privacy is a myth in this super-connected world. The main idea of cryptocurrency is to give users control over their funds as well as maintain privacy. Now, if a well-known exchange hinders that very idea by selling customer data, it is going to create waves in the industry.
However, Coinbase tweeted clearing that the reports were wrong and that they do not sell any customer data to the authorities or anyone for that matter. The exchange claims that it is a priority for them to provide the safest crypto experience to their users. And this allegation is completely on the opposite side of that.
The reports that claimed Coinbase sells user data also talked about the exchange’s tracker tool. So, Coinbase also cleared the misconception about the same saying that the tracker tool uses public sources of information and not proprietary user data. And most importantly the use of tracking tools is not to keep surveillance over normal users but for tracking financial crimes and money laundering.
How to keep your user data safe?
There are two things ones can do to keep their data safe. The most obvious thing is to use a VPN service and for that case a good one that actually works. Secondly, if you are concerned about your data safety and security use a software or hardware wallet along with a decentralized exchange. Otherwise, it is hard to believe that any centralized platform will keep all your data private.
What are your thoughts as Coinbase responds to reports of it selling customer data? And do you think that they were selling user data or not? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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