Coinbase, the largest cryptocurrency exchange in the US, was reportedly selling Geo Tracking data of its customers to the government. This hinders user privacy and makes you question whether the exchange is trustable. However, Coinbase responds by saying that do not sell proprietary customer data after the unverified reports were going out of control.
Coinbase responds to the reports of them selling Geo Tracking 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 Geo location data of users, 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 proprietary 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 geo location data also talked about the exchange’s tracker tool. A spokesperson from Coinbase cleared up misconceptions about the same saying that Coinbase’s tracker “is a compliance solution that Coinbase offers to governments, financial institutions, and crypto businesses. It enables them to investigate financial crimes including money laundering and terrorist financing. All Coinbase Tracer features use data that is fully sourced from online, publicly available data, and does not make use of Coinbase user data.”
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 Geo tracking data? And do you think that they were selling some sort of 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.