According to a Coinbase Executive, Christine Sandler, the leading Cryptocurrency exchange platform has liaised with Neutrino– a data safety solution.
Neutrino solution offers to provide 100% data privacy to ensure that users’ data is not obtained by unauthorized third parties.
Through the deal, Coinbase aims to protect clients from unscrupulous data management service providers who usually sell data without consent from owners.
Data Is Central In Crypto Transactions
In the realm of Cryptocurrencies, users always submit their individual data such as countries of residence, cities, names, etc. that are often required in KYCs. Under mutual understanding between a platform and the clients, these data should be kept private and safeguarded from hacks.
Further, there are privacy laws that are being legally enforced through policies such as the CCPA, GDPR, and BDSG-New rules. These laws also cover Crypto–fiat on-ramps such as Bitfinex or Coinbase.
As gateways for Crypto liquidity, the platforms usually have raw data that is deemed as vital to users as privacy is key in the Cryptocurrency industry. However, due to the decentralized nature of Cryptos and Blockchain, a self-regulated mechanism becomes ideal for ensuring that there is compliance in the part of third-party service providers as well as commitment on the part of the Crypto exchange.
Coinbase Is Taking The Extra Step In Data Protection
Coinbase uses third-parties to manage their data to guarantee traders on the Coinbase and Coinbase Pro platform utmost data security. However, as revealed by Coinbase Head of Marketing, Christine Sandler, the third-parties have been violating their agreement by selling customer information.
In the interview, the top Coinbase Executive explained that it is because of this problem that the US-based exchange decided to acquire Neutrino – an emerging Blockchain intelligence company that specializes in guaranteeing data privacy.
This deal now gives Coinbase a proprietary technology that keeps “data safe and protects” all Coinbase clients from data breaches.
The Controversies Have Been Addressed
There have been concerns regarding the deal following reports that revealed that the managers of the Intelligence Company were members of the Milan-based hackers’ team.
As per an EWN report, the team has been caught in the past selling surveillance tools to repressive regimes with dire political implications in the respective countries. However, Coinbase argues that it’s the exceptional Neutrino capability of keeping data private that makes the team to be the ideal provider for the service.
It is important to also note that the Coinbase team considers that Neutrino will play a vital role in taming scams that may emerge in the long term.
Therefore, the political correctness risk that Coinbase is taking is by far lower than the immense opportunities that Neutrino proffers.
Coinbase Has Been At The Forefront Of Safeguarding Data
Notably, Coinbase has already shown to have high data integrity by resisting the government pressure to hand over clients’ data for tax compliance investigations. With the Neutrino deal in place, many users will have the confidence to send, receive, and store Digital Tokens in a Crypto exchange platform and wallet that is trusted, safe, and committed to data integrity.