Coinbase is silently tracking how you spend you coins

[Amph]

Of course. They are a regulated company following regulated rules. You shouldn't expect less.

so regulation now is synonymous of privacy violation?, you can't have both, but there must be in between a way to follow to avoid issue with either one

like for example do not track all customers, but just those that you believe are not 100% honest citizens...

[ObscureBean]

This is something people will have to get used to if we want Bitcoin to ever go mainstream one day.

Only as long as they opt to use shitty online wallets, may they be called coinbase, xapo, blockchain.info and whatever else.
If you'd use a properly set up local wallet (electrum, core, armory,...there's enough for everyone to find a favorite), that's a whole different story.

You really think that if Bitcoin goes mainstream you'll be able to avoid regulations by using a local wallet? If the government gets involved in Bitcoin, and they will if Bitcoin becomes a legal currency, you can be sure that every single coin movement will be tracked. The blockchain makes it impossible for anyone to do anything without being noticed.

[Lutpin]

You really think that if Bitcoin goes mainstream you'll be able to avoid regulations by using a local wallet? If the government gets involved in Bitcoin, and they will if Bitcoin becomes a legal currency, you can be sure that every single coin movement will be tracked. The blockchain makes it impossible for anyone to do anything without being noticed.

Bitcoin will stay pseudo anonymous no matter what, unless you're afraid of a change in code, that none would adopt to anyways.
That being said, no matter how many eyes are watching, being pseudo anonymous is perfectly fine for me, with a few additions here and there.

[bitbet-info]

This is something people will have to get used to if we want Bitcoin to ever go mainstream one day.

Only as long as they opt to use shitty online wallets, may they be called coinbase, xapo, blockchain.info and whatever else.
If you'd use a properly set up local wallet (electrum, core, armory,...there's enough for everyone to find a favorite), that's a whole different story.

+1000

[Xester]

Hello,

We are the admin team for https://bitbet.us, and it has come to our attention that Coinbase has silently started tracking how their customers spend the coins purchased on their site.

One of our users what threatened by Coinbase with account closure after he placed a bet on our site.

The implication is basically that Coinbase is now officially in the business of deciding what you can and can't do with your own money.

They've essentially lowered themselves to the level of the likes of VISA and Paypal.

Should you decide to spend your coins on dildos and should Coinbase tomorrow decide that dildos are something they disapprove of, you may face account closure.

Caveat Emptor.

Coinbase is not the only site that blocks users if they find out that their site was used in gambling. Even coins.ph has blocked some members who they found out use their site for gambling use. So the best way is to use blockchain wallet in gambling. Then you can forward it later from blockchain wallet to coinbase.

[Dudeperfect]

That’s not fair in my opinion. How one can decide that what another one should spend? I am curious about alternate service providers, anyone here faced similar situation? If we call it anonymous then what’s the point of it to get rules and regulations implied on it. It doesn't matter if they are tracking how users are spending their coins (as they are service providers so they have right to do that under the name of ‘improving user experience’) but it’s none of their business to force users to spend or forcing them to refrain from spending at particular site.

[trafficolaa]

This is very bad example of services but it is not new for us, betting is totally against their terms and conditions, I think that is the reason so many people who are interesting in gambling with bitcoin finding the other way, coinbase is going very strict with its policies and now recently it closed its services in some countries.

[TGD]

Hello,

We are the admin team for https://bitbet.us, and it has come to our attention that Coinbase has silently started tracking how their customers spend the coins purchased on their site.

One of our users what threatened by Coinbase with account closure after he placed a bet on our site.

The implication is basically that Coinbase is now officially in the business of deciding what you can and can't do with your own money.

They've essentially lowered themselves to the level of the likes of VISA and Paypal.

Should you decide to spend your coins on dildos and should Coinbase tomorrow decide that dildos are something they disapprove of, you may face account closure.

Caveat Emptor.

Coinbase is not the only site that blocks users if they find out that their site was used in gambling. Even coins.ph has blocked some members who they found out use their site for gambling use. So the best way is to use blockchain wallet in gambling. Then you can forward it later from blockchain wallet to coinbase.

Agree with you I had many friends  got deactivated by coins.ph
And many had fear to use that local wallet, but if your not use this wallet from gambling I don't see any problem they just strictly in gambling and malicious transaction. so if you want to gamble don't use this wallet use blockchain or other online wallet  that's part of terms in condition just read it first.

[BitcoinEXpress]

All you have to do is transfer your BTC from Coinbase to another wallet and send from there.

Jeez how simple is that?


~BCX~

That's assuming they won't track that as well.

They're not tracking anything that doesn't leave a Coinbase wallet.

As mentioned above, try funding a terrorist organization or even funding an unregulated gambling site from your CC or bank account, see what happens.

Imagine that, authorities get a little touchy about funding illegal activities.

Privacy and the ability to commit crime anonymously are two separate things.



~BCX~

[mileymatmun]

Haha i was sent the mail by Coinbase in the last year. They told me that they would ban my account if i sent money to those bet site. Lot of people have been sent the mail like me since last year.

[Hazir]

Haha i was sent the mail by Coinbase in the last year. They told me that they would ban my account if i sent money to those bet site. Lot of people have been sent the mail like me since last year.

Nothing new, nothing unusual from their side. People need to understand that using Coinbase as a wallet is not good idea at all and avoid doing that.
Same with Xapo Wallet which has similar level of control over people's account and they're monitoring your every transaction. So you:

1. Can't gamble or receive/send coins to any related with gambling services or using VPS to access their service.
2. Legally you have to over 18 years old to use their wallet.

[gadman2]

Of course. They are a regulated company following regulated rules. You shouldn't expect less.

so regulation now is synonymous of privacy violation?

...

Yes. If you think otherwise you are misguided. Have you heard of this new currency called Bitcoin?

[bitbet-info]

But then again if you are already registered with Coinbase, send your btc to an exchange withdraw them after to another address , they still able ti trace you and tell you what to do with your coins ?? 

It seems their track your coins 3 hops away, according to some accounts we've heard on Reddit.

[pedrog]

There's only one destination for coins bought at Coinbase, and it's to be sold at Coinbase.

Use it as an exchange not as a wallet, if you need a wallet use a proper one.

[bitbet-info]

There's only one destination for coins bought at Coinbase, and it's to be sold at Coinbase.

Use it as an exchange not as a wallet, if you need a wallet use a proper one.

Words of wisdom. And send them to your wallet via a mixer.

[ranochigo]

This is something people will have to get used to if we want Bitcoin to ever

You really think that if Bitcoin goes mainstream you'll be able to avoid regulations by using a local wallet? If the government gets involved in Bitcoin, and they will if Bitcoin becomes a legal currency, you can be sure that every single coin movement will be tracked. The blockchain makes it impossible for anyone to do anything without being noticed.

It can be tracked but it would be difficulty for them to tie the coins to a single person if a mixer+ bitcoin core is used to prevent sybil attack. It can still be tracked to a person if the end address is to a service which requires ID verification.

[Cast12]

Meh, nothing new. If you don't like it, just switch to a different wallet. How does wallet-explorer find out which site owns which address anyways?

[The Sceptical Chymist]

Yep, not a surprise.   Banks do this too.  I got asked by my bank what all the Circle transactions on my account were and if any other people were involved (!).  Coinbase closed my account last year,  and I never deposited any bitcoin on gambling sites.  No loss, really.

[NeuroticFish]

Bitcoin is not anonymous. And that allows such behavoirs.
Use your own wallet. Use anonymous coins or mixers. Use the services like Coinbase only as exchange.
Then you will have your privacy and no one will be able to interfere.

[Kevin77]

That's the reason I don't like coinbase. If I need to send coins for a trade, they won't let me do it and start investigating if the user asks me to send coins to a gambling address of his. They also give our information if they need to and without confirming or informing us.