Coinbase Helps Feds Track Cryptocurrency Movements
Coinbase will help track cryptocurrency movements
USA is going to fight against darknet
Coinbase Analytics will be track cryptocurrency transactions
One of the largest American cryptocurrency exchanges Coinbase will develop a tool that will allow you to track the movement of cryptocurrency, as well as extract data about the recipient coins. Thus the US government wants to influence the reduction of the trade in drugs and other prohibited substances and items through cryptocurrencies.
Cryptocurrencies under control
Cryptocurrency exchange Coinbase begins cooperation with the Drug Enforcement Administration (DEA) and the Internal Revenue Service USA (IRS) to develop a tool to track the movement of cryptocurrencies and prevent drug trafficking and money laundering. New the analytical tool was named Coinbase Analytics.
To develop a new tool were recruited specialists from Coinbase Consumer, Coinbase Pro and Coinbase Custody divisions. So way, Coinbase joins an alliance of companies that oppose the use of cryptocurrency for acquisitions illegal goods and substances. At this moment the alliance includes such company, like Chainalysis, Elliptic, CipherTrace and others.
Coinbase Analytics includes “some of the more conservative heuristics used in commercial blockchain tracking tools,” according to a May report from the US Drug Enforcement Administration.. it will allow you to accurately determine the movement of cryptocurrency from the sender to the recipient practically without false testimony.
So far, the final cost of developing the Coinbase Analytics tool is unknown. but DEA and IRS official reports say that him the maximum cost should not exceed $ 250 thousand.
Darknet will become more controllable?
Cryptocurrencies are still widely used in the Darknet. According to analytical report released by Crystal, bitcoin is an one of the most popular payment methods on the Darknet. But Now users black market have learned to cover their tracks and use special mixers to hide the purchase of unlicensed or prohibited items. Despite to the fact that quantity translated bitcoins in the first quarter 2020 of the year decreased by 22% compared to 2017 and amounted to 47 thousand. MTC, cost of translated of money in dollar equivalent increased significantly and amounted to $ 411 million.
Previously BeInCrypto reported that the American authorities seriously decided to take up the fight against the Darknet. The Department of Homeland Security established immediately some programs that track cryptographic activity in Tom number Center cash smuggling, which the ensures prompt support in enforcing the rule of law and prohibiting mass smuggling currencies or transfers of illegal proceeds.
The document submitted by the Department of Homeland Security states that “the crypto intelligence program identifies unlicensed money service companies in the form of independent cryptocurrency brokers’ use of peer-to-peer (P2P) sites, online forums and classified advertisements, and darknet markets (DNM) for participation in unlicensed money services (MSB) ”. In other words, the main objective of the initiative is to identify illegal use of cryptocurrencies in networks Internet, which causes significant damage to the country’s economy.
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