\u201cReporting of personal transaction data has historically been a challenge for the industry and for consumers. This clarity on legal obligations to reporting will help and also the growth of new reporting services.\u201d<\/p>\n
While Aruliah acknowledged the potential burden on smaller startups, he said the push toward transparency was not only necessary but overdue.<\/p>\n
\n\u201cAny regulation is generally regarded as an additional cost burden to the industry but that has to be balanced against the benefits that it provides. Therefore, it may be that smaller firms are impacted disproportionately based purely on costs (i.e. due to their size and profits), but nevertheless, these obligations are an expected next step and simply look to match the general reporting obligations in the tradfi space.\u201d<\/p>\n
Mark Aruliah<\/p>\n<\/blockquote>\n
But for many critics, the bigger question is not about collecting data. It\u2019s about keeping it safe.<\/p>\n
Great responsibility<\/h2>\n
That concern came into sharp focus as cryptocurrency exchange Coinbase recently confirmed a breach involving customer data. According to the U.S.-based crypto exchange, contractors working for Coinbase overseas were bribed by attackers who gained access to sensitive customer information.<\/p>\n
That included names, emails, phone numbers, addresses, and in some cases, partial Social Security numbers. Some users have even reported that ID documents like passports and driver\u2019s licenses were exposed.<\/p>\n
Coinbase said the breach affected less than 1% of its user base, though with nearly 9 million monthly active users, even that sliver represents a significant population. Worse still, it\u2019s exactly the kind of personal data the U.K. now wants firms to collect and verify \u2014 and the breach raises urgent questions about whether crypto companies are equipped to handle such responsibility.<\/p>\n
<\/p>\n
While Coinbase claims its internal systems caught the breach quickly, blockchain investigator ZachXBT has said signs of trouble were visible much earlier. Back in February, he flagged a string of scams tied to Coinbase\u2019s infrastructure, including one victim who lost $850,000 after being duped by a fake Coinbase support agent.<\/p>\n
If the U.K.\u2019s CARF-aligned rules were already in force, the firm could be staring down millions in fines, not to mention reputational damage that\u2019s harder to quantify. Still, the juxtaposition is hard to ignore: the U.K. is telling crypto firms to hoard personal data, just as one of the world\u2019s largest exchanges admits it failed to keep such data safe.<\/p>\n
<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
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