According to public records, cryptocurrency exchange platform Coinbase seeks to sell Blockchain analytics and surveillance software. Its two objectives are DEA (Administration for Drug Control) and the IRS (Internal Revenue Service).
The name of this software, based on the cloud, stands out in the documents as “Coinbase Analytics“
The news portal The block He was the first to give information in this regard, citing documents regarding sales made to the IRS and DEA. These documents were issued on May 18 and April 7, respectively.
It should be noted that Coinbase Analytics is not a publicly recognized offering. However, the term appeared on a list of jobs, already removed.
DEA Interested in Coinbase Software Accuracy
In accordance with the possible DEA contract, Coinbase Analytics will provide “identity attribution” both nationally and internationally for crypto addresses.
The contract also states that “It is the cheapest tool on the market that has more features” The details of those features? They were not specified.
It further explains that “Without this advanced tool, the DEA would not be able to perform an on-site verification of various money movements”
DEA’s interest appears to stem from the accuracy of Coinbase Analytics. Has “some of the most conservative strategies used in Blockchain surveillance software, a critical distinction to avoid false positives“
The “compliance period” of the DEA contract runs from April 3, 2020 to April 2, 2021.
IRS contract confirms your stay in the world of cryptocurrencies
The IRS has recently started to scale up its cryptocurrency activities, and it seems they are here to stay.
The document adds that in the case of the IRS, Blockchain surveillance software would be used by the Cybercrime Criminal Investigation Unit. For this end “I know requires a software tool that can assist in tracing various types of crypto, not just Bitcoin”
This implies that Coinbase Analytics has qualities that are not currently found in other tools on the market.
Likewise, Neutrino, a Blockchain monitoring company that Coinbase bought last year, is mentioned in the contract. It states that “Allows monitoring of cryptocurrency flows through multiple Blockchains currently used by criminals“
The IRS also specifies that the contract execution period is one base year from the award date, with a 12-month option.
Both companies are seeking yearlong contracts, and while it is unclear how much Coinbase would be paid for Blockchain surveillance software, the DEA deal does not exceed $ 250k.
That figure was indicated in a subtitle of the document, mentioning that the value is more than US $ 10,000 but not more than US $ 250,000.
Coinbase seeks to benefit from the federal field with its new software, joining a crowded field of Blockchain surveillance companies such as Chainalysis, Elliptic, CipherTrace, among others. Although these contracts indicate that Coinbase appears to be on the way to weakening competition.
Do you think this will present a preview for Coinbase? Or will it further weaken user confidence in the platform? We await your response in the comment box.