The company announced “Coinbase Intelligence” on April 28, claiming that it would deliver crypto compliance at scale.
The company went on to say that it was particularly familiar with the difficulty of keeping up with worldwide standards and that it wanted to ensure that everyone could safely engage in the crypto business.
The tools will tackle the compliance needs of “financial institutions, crypto businesses, law enforcement agencies, and corporations new to crypto,” according to the announcement.
Coinbase Know Your Transaction (KYT), a transaction screening tool, is included in the new set of technologies. Financial institutions and crypto enterprises would be able to “proactively manage risk based on our proprietary risk scoring system,” according to the company.
To automate real-time transaction monitoring, the KYT service can be used as an API (application programmable interface). The point is to keep bad actors and spurious transactions at bay.
In practice, bad actors would use a service like Tornado Cash to mix or disguise transactions.
Users can also receive warnings to enable proactive risk management if their risk profiles change, as well as scan transactions for anti-money laundering flags.
The company’s analytics software has been renamed “Coinbase Tracer.” The technology, which has previously been utilized by governments and law enforcement organizations, now connects activity to real-world entities in order to depict crypto asset flow.
Regulators and lawmakers may applaud the additional features, but for the typical user, Coinbase is more becoming a traditional bank. Customers in Canada, Singapore, and Japan will be asked to submit additional details about their transactions, Coinbase announced in March.
Most banks set transaction limitations, demand a slew of personal data, report transactions to the government, charge exorbitant fees, and limit what their clients may do with their own money.
Centralized exchanges will have no choice but to follow this road as global regulators tighten the screws on the crypto industry, and Coinbase appears to be leading the way. On April 28, the company shares (COIN) hit an all-time low of $115.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Patrick
CoinCu News
Discover how DTX Exchange's historic achievement of 100,000 transactions per second on a layer-1 blockchain…
VanEck suggests the U.S. could reduce its national debt by 35% by 2050 through a…
President-elect Donald Trump named Bo Hines as the executive director of the presidential crypto council.
Explore the best new meme coins with 1000X potential. Learn how BTFD Coin leads with…
BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…
Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…
This website uses cookies.