CryptocurrencyExchanges

US IRS will track transactions using Coinbase Analytics tools

The United States Internal Revenue Service (IRS) has signed a contract with the Coinbase cryptocurrency exchange to use the Coinbase Analytics analytic tools to track cryptocurrency transactions.

The agreement will enter into force on July 23, 2020. It will be valid for a year, after which the contract can be extended. The annual fee for using Coinbase tools will be $ 124,950. Earlier it was reported that the Coinbase exchange was already considering the IRS and the Drug Enforcement Administration (DEA) as potential customers interested in the exchange’s blockchain analytics software. The IRS announced its intention to use Coinbase Analytics last month.

According to the agency, Coinbase tools will allow you to analyze and track transactions with crypto assets in different blockchains that criminals often use. The IRS believes Coinbase Analytics has functionality to effectively monitor compliance.

The Coinbase analytic platform appeared after the exchange bought the startup Neutrino, whose creators were previously the leaders of the Italian spyware provider Hacking Team. Members with discontent in Osprey nyali news about Neutrino purchase, and even offered to declare a boycott of the Exchange. 

Coinbase CEO Brian Armstrong explained that the acquisition of this startup entailed certain difficulties, but later the management was able to reshape the team.

“Creating such tools is expensive, so we want to offset our costs. There is a market for blockchain analytics software where we sell our tools not only for profit but also for the benefit of users. Such cooperation will strengthen our ties with law enforcement agencies, it is important for the development of the cryptocurrency industry, ”said Brian Armstrong, Coinbase.

Recall that a few days ago, a Coinbase user sued the IRS for seizing his personal data that could have been obtained during the prosecution of Coinbase.

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