Coinbase shares customer data
Unfortunately or fortunately, modern cryptocurrency companies cannot fully embody ideas about confidentiality and decentralization of information. It should be understood that in our time, governments strive to control every area of our lives. Especially when it comes to money turnover using digital assets. This is why internal companies are faced with a choice: transfer customer data or close. Of course, the choice will be made in favor of the first option. This is exactly what Coinbase will do. The platform intends to transfer part of the customer data to the UK tax office. Below we will tell you everything that should be understood in relation to this event. So let’s get started.
More about the project and event
First of all, it should be recalled that Coinbase is one of the largest digital exchanges of our time. The platform operates in many countries and actively promotes its own services in Europe. The exchange is constantly used by a million-strong audience who buys and sells cryptocurrency for huge amounts. This is why Coinbase is interested in Her Majesty’s Office of Revenue and Customs (HMRC). The company is obliged to disclose the personal data of customers at the disposal of the company. Note that the regulation applies to those users who have received more than £ 5,000 during their use of Coinbase.
Platform clients falling under this category have already received an email notification. If you are one of these users, then you probably do not understand what kind of data the exchange is going to transfer. If it’s just a list of transactions, then there is nothing critical about it. This is a standard practice to track the legality of transfers. Nevertheless, when it comes to more confidential information, justified worries may arise.
The main nuance
The problem is that the company does not specify exactly what information is passed into the hands of HMRC. Will the contents of investment portfolios be revealed? Will the data on activity on the exchange pass into the hands of the government? Perhaps HMRC wants to receive from Coinbase specific addresses from which the funds were debited and to which funds were received? There is no specifics on this issue. The only thing that is known for sure is that the data of those users who received more than 5,000 pounds sterling in cryptocurrency are being declassified.
That is, the vast majority of Coinbase customers. We also note that the exchange informs that the published information affects only the period 2019-2020. Moreover, the government initially demanded to publish data from 2017 to 2019. But the exchange managed to find a compromise. However, the event is still ambiguous. Let’s discuss what you can do to minimize negative test results.
What if Coinbase discloses data?
In fact, honest crypto industry users who receive money through a legal entity have nothing to worry about. Paid taxes will not raise any doubts about your integrity. For those who have doubts about their own account or have suspicious activity on the exchange, we recommend preparing for unpleasant consequences. HMRC has previously announced the use of special technologies. Technical solutions will reveal questionable activity with digital assets. That is why even the exchange itself invites users to independently contact specialists. We also strongly advise, for added security, to consult experts in tax and legal matters. This is the right step to make your own work in the crypto industry as secure as possible. The main thing is not to worry.
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