Coinbase, one of the leading BTCUSD trading platforms, is in talks with the IRS and the DEA for selling a Blockchain Analysis software.

Coinbase is one of the largest Bitcoin trading exchanges. It was under a lot of flak recently, when its servers mysteriously shut down after BTCUSD crossed $10,000.

The shutting down of the servers prevented users from squaring off their positions. Its servers restored only after BTCUSD lost the gains. Now, Coinbase is another round of criticism over the selling of its Blockchain analysis software to Government agencies.

Bitcoin community expresses anger over Coinbase deal

BTC is a decentralized ledger. It is what sets Bitcoin apart from any other form of currency. No government entity owns or controls BTC. Now, Coinbase is selling its Blockchain Analysis software to the Internal Revenue Service (1) and the Drug Enforcement Administration (2). It is bound to raise eyebrows. 

‘Big Brother is always watching’ is a famous phrase coined by the pseudonymous writer, George Orwell, in 1984. It referred to the spying by the government agencies. Bitcoin was so far devoid of any government intervention. 

However, with this deal, the Govt agencies would inch closer to a ‘Big Brother’ like situation for BTC.

BTC exchange records show the contract is not yet through

The whole fiasco began with the acquisition of intelligence firm, Neutrino by Coinbase over a year back. It came to light as Neutrino was mentioned in the IRS document.

Coinbase indicated that “the information offered in Coinbase Analytics has always been kept completely separate from Coinbase internal data.“

The records show that the deal is not yet through. Here is the BTCUSD hourly chart:

BTCUSD Hourly Chart

Coinbase and its long history of clashes with the Bitcoin Community

The leadership of Coinbase has been at the facing end of criticism over its policies regarding Bitcoin. Coinbase is known for promoting and pumping Bitcoin forks. That is why people are expressing their anger. The only way to keep BTC as the currency of the future is by safeguarding its decentralized nature.