Crypto exchange platform Coinbase denied the allegation that the company is selling its customer information to the United States Immigration and Customs Enforcement (ICE), an agency that works under the country’s Department of Homeland Security. It explained that the crypto exchange was not selling its users’ data and highlighted that it only provides information for investigations of financial crimes.
On Thursday, news that Coinbase has been transmitting the geolocation data to the ICE has circulated online. Because of this, Twitter users like Solobase Mac were shocked and noted that they “didn’t sign up for that.”
In a Tweet, Coinbase explains that the firm “does not sell proprietary customer data.” The exchange highlighted that its primary priority is giving a safe and secure experience to the users of the platform.
Furthermore, the crypto platform has also clarified that its Coinbase Tracer tools are created to conform to government requirements. Coinbase demanded that this is used to investigate finance-related crimes such as terrorist financing and money laundering. The exchange claimed that the information they provide to the government comes only from public sources and not from Coinbase user data.
Back in September 2021, Coinbase signed a deal with the ICE for developing software for the government agency. The agreement requires the exchange to provide “application development software as a service” to the ICE in exchange for $1.36 million.
In spite of the obstructions caused by the current crypto winter, Coinbase is looking to extend its activity in Europe. The exchange has started hiring staff in Switzerland and is approved to operate in countries like Germany, Ireland, and the United Kingdom.
Last week, credit rating firm Moody demoted Coinbase’s CFR, which is the firm’s opinion on Coinbase’s capability to pay its financial obligations. The rating agency also demoted the exchanges’ guaranteed senior unsecured notes, which is debt that is not backed by any collateral assets.
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