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How would Coinbase know anything about your transactions? Shouldn't they just process the exchange of necessary payment information?
by jsprogrammer 11y ago
How would Coinbase know anything about your transactions? Shouldn't they just process the exchange of necessary payment information?
- adrianmacneil 11y agoWell if you conduct transactions on their platform, then they know the source/destination, notes, amount etc. AML laws require them to detect and prevent illegal activity on their platform (just the same as Square, Stripe, Venmo/PayPal, your bank etc).
- jsprogrammer 11y agoBased on that information it would seem the only illegal transactions there could be (that coinbase could detect) would be transactions over a certain amount (illegal, where?) or transactions with banned destinations (I believe HSBC used to [alledgedly they don't, now?] process transactions for Iran, as well as other banned destinations.). Is there a comprehensive list of banned destinations?
- danneu 11y agoI most often hear about people getting banned for using bitcoin gambling sites within a hop of their coinbase account. For example, withdrawing from Coinbase straight to "1LuckyB5VGzdZLZSBZvw8DR17iiFCpST7L" as an obvious example. Though they are smarter about it than just static "bad address" lookup.
- joosters 11y agoBitcoin addresses for darknet marketplaces are easily available - e.g. https://www.walletexplorer.com/ https://www.walletexplorer.com/ Perhaps Coinbase will turn you away if they see you depositing money on a drugs market?
- jandrese 11y agoIt is ironic that Bitcoin is thought of as the criminals currency when it's one of the most trackable in the world.
- CyberDildonics 11y agoIt depends on how it is used. Any darknet that has addresses associated with it could be run a lot better.
- jsprogrammer 11y agoBitcoin allows more to know of those criminal actions. With untrackable currency (USD, et al.), you get HSBC's and all the others, who may commit crimes in secret and destroy the evidence.
- superuser2 11y agoYes, there is a comprehensive list of banned destinations and banned people/organizations. Banks develop and audit systems that import this database and scan their data warehouses to make sure no one is on it. http://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx http://www.treasury.gov/resource-center/sanctions/SDN-List/P...
- such_a_casual 11y agoThey wouldn't unless you did business with a blacklisted wallet (or blacklisted coins). However, as a financial institution, they may be required to ask questions.
- driverdan 11y agoThat's what they should do. Instead, they follow your coins in and out and if they don't like how you use them they freeze your account.