Coinbase is a global service used for purchasing and selling cryptocurrencies, also providing a method of storing digital currencies. With big aims of creating an open financial system available for the whole world to use, they must also be very cautious of non-compliant accounts. This term doesn’t necessarily carry negative connotations, as these accounts can be good or bad.
The company has been granted their request of a patent which enables Coinbase to spot these accounts on their system. Their application, with the United States Patent Office, specifies a system which is able to provide a ‘compliance score’ for each account registered with them. The score shall then be compared, by the proposed system, to spot any accounts which don’t satisfy the required standards, which will then follow a decision of whether they should be closed. Furthermore, the file application states that conducting research on the parties on either end of the transaction, after speculation of illegal activity, could also aid in a decision of whether an account should be closed.
This comes as good news to the Coinbase, allowing for a more reliable and trustworthy service from the global digital asset company. On the other hand, any potential misjudgement of parties, regarding a transaction, could result in the closing of many accounts for no reason. However, the approval of the patent is likely to aid the company to fight illegality and fraud, rather than hinder it through any potential misjudgement.
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