Tag Archives: Coinbase

Rumours fly around the industry suggesting Coinbase could become a public traded company in the near future

Rumours fly around the industry suggesting Coinbase could become a public traded company in the near future

Has Bitcoin Begun Its Downtrend?

  • In recent weeks, rumours have been flying around the crypto space indicating that one of the biggest platforms in the industry, Coinbase is soon going to go public. 
  • It has been reported that the platform has been talking with investors and attorneys in order to prepare for this move to become a publicly traded business.

In recent weeks, rumours have been flying around the crypto space indicating that one of the biggest platforms in the industry, Coinbase is soon going to go public. It has been reported that the platform has been talking with investors and attorneys in order to prepare for this move to become a publicly traded business. Founder of L2 Counsel, Louis Lehot, the $8 billion valuation of the platform puts them in a position for a direct listing rather than an IPO.

He further said:

“Founded in 2012, Coinbase is one of—if not the—most well-known cryptocurrency platforms globally, with over 35 million users who trade virtual coins. The New York Stock Exchange, BBVA, and former Citigroup Inc. CEO Vikram Pandit are among the San Francisco-based company’s many investors. Additionally, back in 2017, it was one of the top beneficiaries of the bitcoin boom, when the original cryptocurrency jumped from $1,000 to almost $20,000.”

Adding to this, Louis further went on to explain how the platform move to a publicly-traded company could be a massive boost for the whole overall crypto space. Many companies have been having to deal with a lack of regulatory clarity over the past few years but recently, there have been some announcements that look bullish for the future.

He adds:

“A new stock market listing for Coinbase would lend legitimacy to other companies building the cryptocurrency ecosystem, and potentially pave the way for future IPOs.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

Article Produced By
Robert Johnson

Robert is a keen investor with a particular interest in cryptocurrencies. He has been involved in the industry for many years, and because of this, has gathered a lot of knowledge surrounding this area. He studied English at university level and has a passion for writing. He loves being able to combine his two mains interests on a daily basis.

https://cryptodaily.co.uk/2020/08/rumours-fly-around-the-industry-suggesting-coinbase-could-become-a-public-traded-company-in-the-near-future

Heiko Closhen, Entrepreneur

Coinbase Now Supports Tezos Staking Rewards for UK and Some EU Users

Coinbase Now Supports Tezos Staking Rewards for UK and Some EU Users

Major crypto exchange Coinbase is rolling out Tezos staking rewards for users in the United Kingdom and three European countries.


Major cryptocurrency exchange Coinbase is rolling out Tezos (XTZ) staking rewards for users in the United Kingdom and three European countries.

In an announcement on May 28, the exchange revealed that users in the U.K., France, Spain and the Netherlands are now eligible to earn interest on their XTZ holdings for depositing and holding the token on the exchange. According to Coinbase, since this feature was launched in the United States back in November, users have earned over $2 million in XTZ staking rewards.

What is staking?

In blockchains that use a Proof-of-Stake system, staking enables network participants to earn a form of “interest” on their holdings, as long as they are willing to lock up their funds to help maintain the operations of the network. The system works because, as opposed to Proof-of-Work systems such as Bitcoin (BTC), nodes in a PoS network are engaged in validating blocks, rather than mining them. Validators for each block on the network are selected, algorithmically, on the basis of the number of tokens a given node has staked in their wallet — i.e. deposited as collateral in order to compete to add the next block to the chain. Token holders can either use a delegated staking service or actively participate in staking their tokens themselves — or, as in the service offered by Coinbase, use an integrated staking feature on a cryptocurrency exchange. Staking holdings can yield significant percentage returns, depending on the size of the participant’s stake: Coinbase indicates that the current estimated annual return for Tezos staking on the exchange is around 5%.

Staking services, both retail and institutional

Coinbase also supports staking for global investors that use its institutional asset custody arm, Coinbase Custody. On the retail end, major exchanges such as Binance have chosen to launch dedicated staking platforms rather than integrating the feature like Coinbase. Some in the crypto community have in the past criticized the increasing prevalence of centralized staking services operated by leading industry players, as well as pointing to other potential drawbacks of the Staking-as-a-Service business model.

Article Produced By
Marie Huillet

Marie Huillet is an independent filmmaker, with a background in journalism and publishing. Nomadic by nature, she’s lived in five different countries this decade. She’s fascinated by Blockchain technologies’ potential to reshape all aspects of our lives.

https://cointelegraph.com/news/coinbase-now-supports-tezos-staking-rewards-for-uk-and-some-eu-users

Heiko Closhen, Entrepreneur

Gemini vs Coinbase which one is better?

Gemini vs Coinbase – which one is better?

Gemini vs Coinbase – which one is better?

According to a recent report, cryptocurrency searches have almost tripled over the last six months. This is in light of the current COVID-19 pandemic which has brought the world to its knees. People are fully aware that the ongoing crisis is going to adversely affect the economy hence they are looking for a haven to store their wealth. Normally they would turn to gold, but as they say “cryptocurrencies are the new gold.” This leads us to the next very critical question; what is a cryptocurrency? I would like to believe that most of my readers have come across this term before because cryptocurrencies have been making headlines and grabbing so much attention lately. However, for those who have never heard of this term before, you have so much catching up to do; but don’t you worry because I’ve got you covered.

Cryptocurrencies are digital coins whose operation is exclusively online.

Most of them do not have a physical representation. Also, they have the same uses as the fiat money we are accustomed to. Some common cryptocurrencies include Bitcoin, Ethereum, Ripple, Bitcoin Cash, and Monero. One of the many ways in which cryptocurrencies differ from traditional money is in the way that they are acquired. While traditional money is distributed by central banks, cryptocurrencies are bought from online exchanges. As a beginner in crypto, you need an exchange that is user-friendly and available in your country. Very many people want to embark on their cryptocurrency journey but do not know just where to start. Today there are very many exchanges to choose from; Gemini and Coinbase are two of the biggest and most trusted exchanges out here. The following “Gemini vs Coinbase” review explores the two exchanges in such a way that you will be able to make an informed decision about which one suits you best

Gemini vs Coinbase: what is Gemini?

Gemini is a well-respected cryptocurrency exchange which was founded in 2015. Its mane is a reference to the zodiac sign that depicts a pair of twins which is quite clever because it is the brainchild of the Winklevoss twins. Its creators are two of the earliest investors in Bitcoin. With its headquarters in New York and strict compliance with existing regulation; the exchange has quickly become a favorite among high-volume investors and institutional traders. One of its outstanding features is that it offers extra security to its users, unlike most other exchanges. This exchange is all-rounded; it allows its users to purchase cryptocurrencies using fiat money which is not the case for many exchanges. It also offers an “on and off-ramp” to cryptocurrency making it a direct competitor with the likes of CEX.io, Kraken, and Bitstamp. It also offers users a lot of extra security features that are lacking in many exchanges.

Distinctive Features

  • Has highly respected staples of the cryptocurrency industry
  • Offers both bank and wire deposit options
  • Responsive customer support
  • Allows both cryptocurrency and fiat money withdrawals
  • Offers advanced trading options in the form of different kinds of buy and sell orders
  • Within the US, it accepts deposits made using Automated Clearing House (ACH)
  • Gemini supported states include Hong Kong, Puerto Rico, South Korea, Canada, and the US
  • Accepts both cryptocurrency and fiat money
  • Offline storage of cryptocurrency and fiat money to protect from hacking

Coinbase Vs Gemini: what is Coinbase?

Coinbase is arguably the most popular digital currency globally. Its headquarters are currently in San Francisco, California and it was established by Fred Ehrsam and Brian Armstrong in 2011. Coinbase is user-friendly and easy to maneuver as compared to other exchanges. It also offers various options for buying and purchasing different digital assets. Most cryptocurrency exchanges are advanced with sophisticated buying and selling options such as ‘limit orders’ and ‘market orders’. It is the absence of these sophisticated features that make Coinbase well suited for beginners. Once you get accustomed to the exchange you can then progress to GDAX which is a more advanced platform that is associated with Coinbase.

Distinctive features

  • Available in over 100+ countries including USA, UK, Canada, Singapore, and Australia
  • It offers very responsive customer support
  • Deals with both cryptocurrency and fiat money
  • Offers simplified instant buying options
  • Bitcoin Cash and Litecoin are available
  • Both the money and cryptocurrency are stored offline for protection from hacking

Gemini vs Coinbase: How is Gemini better than Coinbase?

  1. Better security

First of all, both exchanges take their customers’ protection very seriously and have additional security measures in place. They both separate the users’ money from the money which they use to operate. And also enforce the two-factor authentication which decreases the likelihood of an account being hacked or phished. Those are just a few of the security measures that both exchanges have put in place.

Gemini however, takes some extreme measures to secure its customers’ funds. They have secured the few digital assets that are stored online in a hot wallet using Amazon Web Services which high level of security controls. Also, only high-level employees can access the coins stored on hot wallets not to mention the hot wallets are accessed through multi-factor authentication (more advanced than two-factor authentication). They use two-level cold storage whose access to cold storage requires the simultaneous actions of more than one employee, thus increasing security. Both hot and cold wallet keys are secured on hardware that has passed a high level of security checks. Lastly, security hardware comes from different manufacturers to prevent supply-chain issues. These extreme measures could be the reason why it was picked by the Chicago Board Options Exchange to settle its Bitcoin futures in 2017. Its high-security precautions make it a better alternative for professional traders who store large volumes of cryptocurrency. However, be advised that exchanges are not suitable for long term storage.

2. Lower fees

Gemini outperforms Coinbase when it comes to fees; they are your best bet to save as much as possible on fees. It does not charge fees for deposits or withdrawals and it only charges a 0.25% or even less fee for trading. Coinbase on the other hand charges around 1.49% for bank transfers and purchases and 3.99% for credit/debit card purchases. Thanks to their very low fees, Gemini is the best alternative for high-volume traders. Most professional traders feel that Coinbase eats a very huge chunk of their profits.

Coinbase vs Gemini: How is Coinbase better than Gemini?

  1. User-friendliness

Coinbase certainly beats Gemini when it comes to user-friendliness. Their website is not only easy to maneuver but also quite responsive. They offer an immediate option for buying and selling digital coins. You can signup, make a deposit into the site and successfully buy your first cryptocurrency in just a matter of seconds. Although the registration at both Gemini and Coinbase is pretty much alike, Coinbase is much easier for a beginner to maneuver. There are no confusing terms, you just log in and conduct your transactions. Gemini is friendlier for experienced traders because it has more advanced features; it offers a clutter-free interface, clean and the options are set out. However, for an absolute beginner, Coinbase is the charm.

  1. Higher trade volumes

Most new users make their first few purchases using Coinbase because it is very user friendly; it is therefore not surprising that the exchange trades more coins than Gemini. For instance, in 5 months. Coinbase can trade over 5.20 BTC while Gemini only trades 1.7 BTC.

  1. Coin availability

While both platforms offer a small variety of cryptocurrencies, Coinbase has a better coin availability than Gemini. They provide Bitcoin, Ethereum, Litecoin, and Bitcoin Cash; while Gemini provides Bitcoin and Ethereum only. This makes Coinbase a better option for traders who prefer to deal with a wider variety of coins.

  1. Extensive deposit methods

Coinbase and Gemini both have different ways of funding their customers’ accounts. However, Coinbase offers more extensive deposit methods; their customers can buy their digital coins using a debit card, a credit card or a bank transfer. While Gemini only offers the bank transfer option. Cryptocurrency deposits are welcome for the specific cryptocurrencies supported by either exchange. Withdrawals follow the same deposit methods for either exchange.

  1. Offers higher purchasing limits

Coinbase does not give any clear limits on new customers; instead, these limits are dictated by factors such as account verification, buying history and account age. The customer’s limit is shown on his/her account’s verification page. Bank transfer limits can reach up to $5,000 per week while credit card limits can go up to $60 per week. Gemini, on the other hand, has predefined bank transfers purchasing limits of $ 500 per day. Therefore, Coinbase is your better option if you are looking to immediately lock in a price higher than $500. Lastly, both Gemini and Coinbase offer wire transfers for those users looking to deposit larger sums; though prior direct communication with them is mandatory.

Conclusion

There you have it! Our complete guide of Gemini vs Coinbase. I hope that helped in distinguishing between the two exchanges. Coinbase is recommended for beginners; despite its high fees the convenience and user-friendliness are commendable. It is also the best option for you if you want to use a credit card. Gemini, on the other hand, is best for experienced traders, those who want to take their trading to another level. It is also a great option when it comes to saving on fees. With both sites being trustworthy, secure and very responsive to their customers; the winner of the Gemini vs Coinbase battle boils down to the user’s needs and preferences. What do you think? Which one is better? Is it Gemini or is it Coinbase?

Article Produced By
Zerocrypted

https://zerocrypted.com/gemini-vs-coinbase-which-one-is-better/

Heiko Closhen, Entrepreneur

Earn cryptocurrency while learning about new digital assets We’re launching Coinbase Earn in invite-only mode today

Earn cryptocurrency while learning about new digital assets

We’re launching Coinbase Earn in invite-only mode today

Coinbase

Coinbase

 

Coinbase’s mission is to create an open financial system, where anyone in the world can participate on equal terms from their computer or smartphone. To bring this vision about, we’ll need to make blockchain technology more accessible, both in the sense of making cryptocurrencies easier to obtain and easier to understand.

That’s where Coinbase Earn comes in.

Earn Orchid

Coinbase Earn allows users to earn cryptocurrencies, while learning about them in a simple and engaging way. The idea is for users to understand more about an asset’s utility and its underlying technology, while getting a bit of the asset to try out. To manage demand, we’re launching Coinbase Earn today in invite-only mode with a single asset: ZRX. Over time, we plan to add more educational content as well as the ability to earn other cryptocurrencies.

Earn EOS

If you’ve received an invite to Coinbase Earn by email, you can go to the Coinbase Earn ZRX page to earn small amounts of cryptocurrency by completing educational tasks like short video lessons and quizzes. But if you haven’t received an invite yet, don’t worry — you can still view all educational content on the Coinbase Earn page for free, and can sign up on the waitlist to be notified as more educational tasks are available.

Earn Stellar Lumens

Learn: simple and engaging cryptocurrency education

In a survey of Coinbase customers and non-customers alike, we found that one of the biggest barriers preventing people from exploring a new digital asset was a lack of knowledge about that asset. Many of the people we surveyed expressed a strong desire to begin learning about new and different crypto assets beyond Bitcoin, but didn’t know where to begin.

That’s why we’re launching Coinbase Earn with tasks related to asset education. The educational content will be publicly available for any curious party to learn more about an asset, even if they haven’t yet received an invite to begin earning.

Earn Basic Attention Token

Earn: a new way to access cryptocurrency

Traditionally, the two ways people have obtained cryptocurrency are through mining or buying. Mining cryptocurrency typically requires technical knowledge and high upfront costs, while buying cryptocurrency can require disposable income to exchange for cryptocurrencies.

Earning cryptocurrency is a third option. It has the potential to expand the blockchain user base from the tens of millions of people with the resources to mine or buy crypto to the billions of people who now have smartphones. This is because one can — in theory — earn crypto simply by clicking buttons on a phone or laptop.

 

 

Coinbase Earn solves many of the practical issues required to turn this theory into practice. We give verified, invited users a series of useful tasks to complete from anywhere to earn digital currency. For this first set of tasks, funding is coming from the 0x external development pool, with 100% of the funds going directly to users. In the future, we may experiment with other kinds of tasks from different types of senders, not necessarily always created by asset developers themselves. For example, there may be tasks paid in Bitcoin that aren’t sent by Satoshi Nakamoto!


We think Coinbase Earn could help open up blockchain access to a new group of users: people who are curious about digital assets, but who’d like to try them out for free just like a normal web or mobile app. By serving that need, we hope to make blockchain more accessible in the process. Please check out the Coinbase Earn page for ZRX today.

 

Learn about working at Coinbase…

 

 

Heiko Closhen, Entrepreneur

Brian Armstrong: Coinbase Custody Has 1 Billion of Crypto Under Management

Brian Armstrong: Coinbase Custody Has $1 Billion of Crypto Under Management

During an on-stage discussion at Consensus, Brian Armstrong, CEO of major United States cryptocurrency exchange Coinbase,

said that its custody service has already received $1 billion in crypto under management. Coindesk reported on Armstrong’s comments on Wednesday, May 15. Panel moderator and Wall Street Journal reporter Paul Vigna asked Armstrong about the perspectives of institutional investments in the crypto industry. In response, the Coinbase CEO provided an example of his own company, noting that Coinbase Custody managed to get $1 billion in assets under management in just 12 months after its launch. He also mentioned that 70 institutions signed up to the service during that period. Moreover, Armstrong believes that investments in the sphere will grow rapidly, as institutions want their funds to be active while in custody. The Coinbase CEO stated that institutions want their funds to stake, vote and do governance on-chain.

As for the most popular asset among the institutional investors, Armstrong thinks that bitcoin (BTC) is still at the top of the list. However, the interest in other coins is growing too, which is why Coinbase currently provides 30 altcoins for institutions, he noted. Finally, Armstrong mentioned that Coinbase Pro — an upgraded trading platform for advanced users — currently has more than 60% of its trading volume coming from institutions. The company is also interested in the idea of a self-custody solution, and is discussing the matter with Israeli-based startup StarkWare. As Cointelegraph previously reported, Coinbase officially launched its custody for institutional investors last July. Back then, the company revealed that it would enable its new institutional clients “to participate in the crypto ecosystem through proof of stake and distributed governance.” Just yesterday, the U.S. exchange made a major announcement concerning the expansion of its services to 50 more jurisdictions, such as Brazil, South Africa and Taiwan, among others. Moreover, Coinbase expanded the trade of USD Coin (USDC) to customers in 85 jurisdictions.

Article Produced By
Ana Berman

Moved by her interest to discover the world of decentralized technologies, Ana joined Cointelegraph in June 2018. Shortly after joining the team as a news writer, she focused on the major crypto stories from Latin America

https://cointelegraph.com/news/brian-armstrong-coinbase-custody-has-1-billion-of-crypto-under-management

Heiko Closhen, Entrepreneur

Trading Fees on Coinbase Pro Remain too High

Trading Fees on Coinbase Pro Remain too High

When dealing with centralized exchanges, there are many factors one should take into account.

Trading fees, both for buying and selling, can quickly cut into one’s potential profits. Over the years, users have expressed their concerns over the fees charged by some companies.

Coinbase Pro Remains Expensive

Particularly Coinbase, as well as Coinbase Pro, are building up a very bad reputation in this department. On most centralized trading platforms, a fee of 0.2% is normal. When dealing with non-fiat exchanges, those fees are usually cut in half. That means one needs at least a profit of 0.3% per order to net a minor profit once the fees are subtracted. Coinbase Pro users, on the other hand, seemingly get shafted.

They pay a 0.5% fee for either buying or selling an asset on this exchange. That fee is at least twice as high compared to other popular trading platforms. Using the regular Coinbase platform is even worse, as its fees tend to spiral out of control. Despite these high fees, both Coinbase and the Pro version remain incredibly popular. That is part of the reason why both platforms continue to make a lot of money. Lowering these fees would not harm anyone, however. In fact, it may help to attract even more users over time.

Article Produced By
JP Buntinx

https://cryptomode.com/trading-fees-on-coinbase-pro-remain-too-high/

Heiko Closhen, Entrepreneur

Coinbase Becomes a Visa Principal Member

Coinbase Becomes a Visa Principal Member

Coinbase is a very big company in the cryptocurrency space.

The team now seeks to expand its presence by issuing a native debit card.
It is a well-known fact that Coinbase has plans to expand upon its existing debit card.

A big Step Forward for Coinbase

Its collaboration with Paysafe has been going on for quite some time now. However, the company needs regulatory approval by official instances.That approval is now seemingly been granted, at least as far as Visa is concerned. They have made Coinbase a Visa Principal Member, giving them the option to issue a debit card without Paysafe’s help. More specifically, it will be best to keep collaborating for the foreseeable future.

However, it will give the crypto firm more space to operate in regardless. Coinbase is the first official cryptocurrency company to achieve this level of certification. It is unclear if this will replace the existing payment card issued by the company in the UK and dozens of other European countries. Given Coinbase’s habit of charging high fees for basic services, it remains to be seen how this situation evolves. Making cryptocurrencies more useful in real life will always be a challenge. So far, debit cards have been a great help, albeit they are not a perfect solution. 

Article Produced By
Jdebunt

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

https://themerkle.com/coinbase-becomes-a-visa-principal-member/

Heiko Closhen, Entrepreneur

Santander’s Coinbase Block Are Fake As Reps Respond

Santander’s Coinbase Block Are Fake As Reps Respond

                           

Stirring the pot

Following a Reddit thread, a supposed Santander staff told the poster that they were no longer dealing with Coinbase in the United Kingdom. It didn’t take long for the Spanish bank to deny this rumour though. On the Bitcoin subreddit, the poster u/iCheat69 claimed that they had been talking to a rep from Santander who said that would no longer be allowing customers to deposit money into the US exchange. 

The post started off saying:

“Just got off the phone with a Santander rep in the U.K. who informed me they will no longer be allowing their customers to deposit money to Coinbase.”

The user went on to explain that the information they were relating had come from the firm’s complaints department and that they had been told: "I should move to an alternative bank if I wish to make the payment."  The reason for this was supposedly because “of an increase in fraud related to Coinbase."  The thread now has a lot of comments on it from different users questioning the nature of the post. Some Redditors were venting steam over banks perceived attitude to bitcoin and crypto in general. But the whole idea of this Reddit post was rapidly denied by other representatives of the Spanish bank. The Block was able to get in touch with these representatives but when asked about clarification of its policy on Coinbase, they were told it

‘wasn’t the case’.

"We do not block payments to legitimate companies… in certain circumstances we will refer payments for additional security checks, where we believe there may be a higher risk of fraud."

Coinbase has had an interesting week, that’s for sure. Earlier this week, the US firm had a spat with Barclays leading it to lose its account with the Banking giant. As reported by CryptoDaily earlier this week, Barclays took a step back from the much-touted relationship in a bid to reduce its exposure to risk, forcing the San Francisco based-exchange to pair up with the UK ClearBank.

Article Produced By
Adrian Barkley

Adrian has been leading teams in the finance sector for over a decade. He is highly experienced, and is responsible for ensuring that the latest news is delivered to you as it is breaking. He has a keen interest in virtual currencies, and has even made investments himself, so is incredibly passionate when it comes to writing about this topic.

https://cryptodaily.co.uk/2019/08/santanders-coinbase-block-are-fake-as-reps-respond

Heiko Closhen, Entrepreneur

Coinbase Gets Legally Involved In IRS Summons Issue

Coinbase Gets Legally Involved In IRS Summons Issue

If you have any interest in bitcoin or the world of cryptocurrency you will know that the IRS has submitted a John Doe Summons to require San Franciso-based, digital asset exchange company Coinbase to submit a complete list of all their clients covering a period of 3 years from the years 2013-2015 inclusive.

In case you're not up to date in this continuing saga, here's the basics:

  1. In November, 2016, the US IRS filed a John Doe Summons, demanding three years (2013-2015) customer database records from Coinbase on the suspicion that some Coinbase users/traders may not be paying their cryptocurrency taxes. 
  2. Subsequent to this filing, Coinbase says they were aware of it and looked forward to discussing the matter but had concerns about the privacy rights of their customers.
  3. Subsequent to Coinbase's statement, on of their customers, Jeffrey K Berns of the Berns Weiss law firm in California, filed a request that the court intervene to stop the summons on grounds that is was overly broad and invasive of Coinbase customer privacy. Note: Mr.Berns also was and presumably still is a Coinbase customer.
  4. Next, the IRS tries to dodge Mr.Berns' filing by stating that since he is now officially known to them as a Coinbase customer he is therefore not a subject of the summons and therefore has no standing in the issue.
  5. Mr. Berns then says that that doesn't make any difference because the John Doe Summons statue do not prohibit him from making an inquiry into the issue, he still thinks the IRS is overstepping its legal authority, and he will still fight the matter in court.

So that's where the issue is as of today. Note that all of this has taken place within the last 90 days.

The latest news is that whereas Coinbase itself has not had any official, legal response to the IRS's filings, now it says it has something it wants to say in court too.

The big question is…."what and why"?

One could reasonably wonder what point Coinbase could make that Mr. Berns hasn't already made.

1.  The stated justification for the IRS's John Doe Summons is overly broad. But Mr. Berns has already said that.

2.  It is an invasion of privacy (in a commercial sense) but Mr. Berns has already mentioned that too.

3.  Not specifically mentioned but also true is that if the IRS can do this, it sets a very bad precedent for even more and potentially broader nefarious IRS demands in the future because it presumes guilt on a sub-set of Coinbase customers. For example, what's to prevent the IRS from demanding records of everybody who bought art supplies from an art supply store because they thought somebody was selling home-made paintings in garage sales and not paying their taxes?

Or, could the reason that Coinbase wants to got to court be that they are trying to set the stage to look like they are trying to stand up for the rights of their customers when they really are perfectly willing to give the IRS all they want?

After all, one way or the other the cryptocurrency business is here to stay. Coinbase could rationally say to themselves, "Our customers don't have any choice but to use or somebody like us if they want the kind of services we provide. So we'll just, under feigned protest, to keep the IRS happy and off our backs."

Nobody really knows exactly what it is that Coinbase wants to say in court but it will be interesting to find out because this whole industry of cryptocurrency is still in its infancy. Exactly how it will fit into our daily lives has yet to be defined either by governments or in terms of consumer acceptance.

It would be nice if those who think that we are seeing the dawn of a grandiose new era of free enterprise and laissez-faire entrepreneurship were right. But all the chips haven't fallen into place yet and cryptocurrency could just turn out to be an excuse for more government intrusion and intrusion into the affairs of normal people.

For more details on these proceedings, just Google, "Coinbase IRS John Doe Summons".

Art Williams
Freelance Copywriter
Case Studies and eMail Copywriting
email me here

 

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