"Big Bitcoin" Watching How You Spend Your Cryptocurrency?

in #blockchain5 years ago

hi steemers

Are large cryptocurrency companies and exchanges watching how you use your Bitcoin? A Coinbase customer was threatened with account closure when attempting to use a gambling site.

A member of online gambling site BitBet posted on Reddit that Coinbase prevented a user from spending Bitcoin on their site:

“Hello,

We are the admin team for https://bitbet.us, and it has come to our attention that Coinbase has silently started tracking how their customers spend the coins purchased on their site.

One of our users what threatened by Coinbase with account closure after he placed a bet on our site.

The implication is basically that Coinbase is now officially in the business of deciding what you can and can't do with your own money.

They've essentially lowered themselves to the level of the likes of VISA and Paypal.

Should you decide to spend your coins on dildos and should Coinbase tomorrow decide that dildos are something they disapprove of, you may face account closure.

Caveat Emptor.”

Coinbase forced to do due diligence to maintain legal compliance

In order to comply with anti-money laundering/know your customer (AML/KYC) regulations, Coinbase has a legal obligation to ensure Bitcoin used through their services is not used for illegal activity, the company said in a statement:

“As a registered Money Services Business, Coinbase has an obligation to monitor for suspicious or illegal activity on our platform. Gambling is heavily regulated so Coinbase, like most payments processors, has strict policies in place around gambling and any other activities which may violate U.S. law. We disclose these in the prohibited use section of our user terms.”

No need to go through large regulated processors

In response to the post by BitBet, a Reddit user posted an image illustrating the simplicity of getting around Coinbase’s regulations: simply transfer Bitcoin to a different wallet, and then spend them as you see fit.

Robert Genito, CEO of decentralized peer-to-peer Bitcoin exchange Wall of Coins, believes that cryptocurrency users should conduct their own financial affairs and eschew management by large corporations bound by all manner of regulations.

thank you for reading

Sort:  

It is a big issue and that is why I feel that Monero is far superior and it is only a matter of time before people realize it. Great post. I upvoted it. We are really lucky to be able to post on Steemit Right now. I just did a post about it. It is a must read! https://steemit.com/steem/@brianphobos/why-steemit-users-are-so-lucky-right-now-3-main-reasons

thank you I think monero also has a big potential, damage it is not more value

I knew Coinbase was going down that route over a year ago. My suggestion, if you like Coinbase to buy your BItcoins then put them in another place like bter.com or blockchain.info and you won't be harassed.

yes coinbase wants begins to operate as a bank, Bitcoin is a currency decentralize it belongs to its owner each person is free to use his money as he wishes