Coinbase unveiled “Coinbase Intelligence,” which claims to deliver crypto compliance at scale. The company explained that it was well aware of the challenges of adhering to global standards and that it wanted to ensure that everyone could safely participate in the crypto industry. Coinbase Intelligence will manage the compliance needs of “financial institutions, crypto firms, law enforcement agencies, and organisations new to crypto”. Coinbase’s goal is to keep bad agents and shady deals at bay.
Coinbase Know Your Transaction (KYT), a transaction screening tool, will be part of the new set of technologies. Financial institutions and crypto firms will be able to use Coinbase’s KYC service to verify their identities to “proactively manage risk based on our patented risk assessment methodology”.
To automate real-time transaction monitoring, the KYT service can be used as an API (application programming interface). Users can get warnings if their risk profiles change after utilising this, allowing them to adopt proactive risk management steps and monitor transactions for anti-money laundering flags. The following is what the company announced:
“At Coinbase, we’ve championed the importance of growing the crypto market in a fair and compliant manner in order to fuel innovation and expand economic freedom for everyone.”
Regulators and lawmakers praise the additional features, for the typical user, Coinbase is increasingly becoming a traditional bank. Coinbase announced in March, users in Canada, Singapore, and Japan will indeed be requested to submit additional details about their transactions.
Most banks enforce transaction limitations, collect a slew of personal data, report transactions to the government, charge exorbitant fees, and limit what customers may do with their own money. Centralised 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.
