Coinbase Seeks 'Invasive' Details on US Bitcoin Mining Operations

[Coinbuddy]

Coinbase's compliance office is seeking to acquire operational information from bitcoin mining companies in a process that some of the sector's businesses are framing as an infringement on their trade secrets.

MegaBigPower (MBP) and Bitmain report that Coinbase has asked for detailed information regarding their mining facilities, requesting time-stamped photographs and videos of mining facilities and details about the origin of the hardware the companies operate.

READ HERE: http://www.coindesk.com/coinbase-seeks-details-us-bitcoin-mining/

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1715120409

[Albert Hamilton]

Simplest solution I see is stop using CoinBase and shift to direct trading exchanges like www.LocalBitcoins.com or www.100bit.co.in.

[RocketSingh]

Simplest solution I see is stop using CoinBase and shift to direct trading exchanges like www.LocalBitcoins.com or www.100bit.co.in.

+1

The more regulations try to hinder normal businesses, the more people will shift to these direct trading exchanges.

[Denker]

Coinbase's compliance office is seeking to acquire operational information from bitcoin mining companies in a process that some of the sector's businesses are framing as an infringement on their trade secrets.

MegaBigPower (MBP) and Bitmain report that Coinbase has asked for detailed information regarding their mining facilities, requesting time-stamped photographs and videos of mining facilities and details about the origin of the hardware the companies operate.

READ HERE: http://www.coindesk.com/coinbase-seeks-details-us-bitcoin-mining/

I don't know. Everytime I read sentences like :"The reason we ask for this information is for consumer protection."
my alarm bells start to ring.

[QuestionAuthority]

The U.S. government is shutting down localbitcoins with sting operations and now it's demanding U.S. based exchanges find out info on large mining operations. What's the next step, all U.S. ISPs must use promiscuous mode packet sniffers to identify Bitcoin nodes? Give them enough time and America can figure out a way to fuck up a wet dream.

[NyeFe]

The U.S. government is shutting down localbitcoins with sting operations and now it's demanding U.S. based exchanges find out info on large mining operations. What's the next step, all U.S. ISPs must use promiscuous mode packet sniffers to identify Bitcoin nodes? Give them enough time and America can figure out a way to fuck up a wet dream.

You say sting operations, are you implying that local bitcoin trading is unauthorised, at least in the us?

[QuestionAuthority]

The U.S. government is shutting down localbitcoins with sting operations and now it's demanding U.S. based exchanges find out info on large mining operations. What's the next step, all U.S. ISPs must use promiscuous mode packet sniffers to identify Bitcoin nodes? Give them enough time and America can figure out a way to fuck up a wet dream.

You say sting operations, are you implying that local bitcoin trading is unauthorised, at least in the us?

Well they're putting people in prison for it, so yeah, I guess it's unauthorized.

See: https://bitcointalk.org/index.php?topic=934268.0

And: https://bitcointalk.org/index.php?topic=462846.0

[chmod755]

Shocking: A financial business is requesting information about their customers

Like seriously: What do you expect? Even without AML/KYC laws: there's something called financial risk management which involves gathering information about customers and closing accounts of high risk customers.

[NyeFe]

The U.S. government is shutting down localbitcoins with sting operations and now it's demanding U.S. based exchanges find out info on large mining operations. What's the next step, all U.S. ISPs must use promiscuous mode packet sniffers to identify Bitcoin nodes? Give them enough time and America can figure out a way to fuck up a wet dream.

You say sting operations, are you implying that local bitcoin trading is unauthorised, at least in the us?

Well they're putting people in prison for it, so yeah, I guess it's unauthorized.

See: https://bitcointalk.org/index.php?topic=934268.0

And: https://bitcointalk.org/index.php?topic=462846.0

From what i understand, it only impacts people trading over $5k (money laundering) or deliberately accepting an exchange with groups who will continue to commit crybercrimes. Well, I thought it applied to everyone

[Soros Shorts]

Shocking: A financial business is requesting information about their customers

Like seriously: What do you expect? Even without AML/KYC laws: there's something called financial risk management which involves gathering information about customers and closing accounts of high risk customers.

Well then please enumerate those risks not associated with violating AML/KYC rules that an exchange could face from not knowing it's customers' source of funds. My bank did not even ask those kinds of questions when I opened a business account for a shell LLC that I set up for myself.

[chmod755]

Well then please enumerate those risks not associated with violating AML/KYC rules that an exchange could face from not knowing it's customers' source of funds.

Fraud / Defaulting. If you know your customer has funds in a high risk business you just shut him down.

[Soros Shorts]

Well then please enumerate those risks not associated with violating AML/KYC rules that an exchange could face from not knowing it's customers' source of funds.

Fraud / Defaulting. If you know your customer has funds in a high risk business you just shut him down.

I am a little older and I remember the days when financial institutions did not care about the source of funds as long as their own interests were adequately protected. Think of Swiss banks up to the 70's or early 80's. There is no reason to shut down a "high risk" customer, such as a drug kingpin, if you were not forced to by the government.

[chmod755]

I am a little older and I remember the days when financial institutions did not care about the source of funds as long as their own interests were adequately protected. Think of Swiss banks up to the 70's or early 80's. There is no reason to shut down a "high risk" customer, such as a drug kingpin, if you were not forced to by the government.

1. Coinbase is a startup - they don't have billions to cover potential losses

2. You had to actually visit the bank - even if you had a numbered bank account your face was filmed every single time - on the internet it's more difficult to know who you are dealing with. Especially in Bitcoin it's important to know about your trading partners.

[aigeezer]

Well then please enumerate those risks not associated with violating AML/KYC rules that an exchange could face from not knowing it's customers' source of funds.

Fraud / Defaulting. If you know your customer has funds in a high risk business you just shut him down.

"High risk" in whose eyes and by what measures? What a moral quagmire!

Whatever happened to "the customer is always right" as a business mantra? Sellers should have no "shut him down" leverage over buyers in a free market, imho.

Demanding payment before delivery is the time-honoured way to avoid seller risk. Nothing wrong with that, I suggest, especially if the customer can deal with a competitor if he finds the terms too onerous.

[QuestionAuthority]

I am a little older and I remember the days when financial institutions did not care about the source of funds as long as their own interests were adequately protected. Think of Swiss banks up to the 70's or early 80's. There is no reason to shut down a "high risk" customer, such as a drug kingpin, if you were not forced to by the government.

1. Coinbase is a startup - they don't have billions to cover potential losses

2. You had to actually visit the bank - even if you had a numbered bank account your face was filmed every single time - on the internet it's more difficult to know who you are dealing with. Especially in Bitcoin it's important to know about your trading partners.

So you believe the guys at Coinbase got a wild idea to start fucking with their customers and said one day, hey let's make every mining farm customer send us photos of their setup with detailed information or we close their account and never exchange anymore Bitcoin for them? 

The government must have demanded the information. Most Bitcoin users I know would never ask for that kind of info and would have told the government to fuck off unless they were threatened. AML/KYC doesn't mean you need your customers cock size. It means you need to have verified their identity. 

[chmod755]

QuestionAuthority: http://www.wikihow.com/Deal-With-Your-Paranoia

[Denker]

QuestionAuthority: http://www.wikihow.com/Deal-With-Your-Paranoia

Stupid answer!

[chmod755]

Stupid answer!

His posts indicate serious issues. What exactly is stupid about suggesting to seek help?

[QuestionAuthority]

QuestionAuthority: http://www.wikihow.com/Deal-With-Your-Paranoia

Dude can't you see the reason for the government wanting to see the equipment. Is not paranoid, it's as plainly visible as the nose on your face.

Let's say one of these mining farms are turning in $2 million dollars a month for exchange to fiat. Coinbase has a reporting requirement so they notify the government. The little poorly paid agent functionary wants to know if they are turning in the proceeds of drug sales to convert or if they actually have the equipment to mine $2 million a month in Bitcoins. He notifies Coinbase to send a letter to them requesting a detailed inventory of equipment to verify the ability to mine that much. Coinbase says, I'm not doing that, that's your job mr. agent. Mr. Agent says, so your tired of having a business license. Ok, I can fix that and remove your license.

If the mining farms are smart and honestly turning in mined Bitcoins they would comply after making Coinbase sign a confidentiality agreement to not make their special mining system public. If they are criminals selling I'll gotten gains they will fight it until guys in blue wind breakers bust down their front door.

[chmod755]

Dude can't you see the reason for the government wanting to see the equipment. Is not paranoid, it's as plainly visible as the nose on your face.

Many people criticize politicians, but your posts are telling me that you're assuming that your government is always evil - completely ignoring the fact that all of them are humans just like you.  That's what paranoia is: trust issues. Of course you don't believe me that you could need help, because you don't trust me either.

Sorry for this off-topic discussion.