Coinbase is accused of monitoring user transactions. Is blockchain decentralization in name only?

Recently, a new hot topic has emerged on Reddit. Some users complained that Coinbase would track their transaction records on the platform. Users of the Bitcoin gambling website BitBet were "threatened" by Coinbase after placing bets. Although blockchain technology is conducive to tracking transaction records, I am afraid that Coinbase's behavior is not appropriate.

In fact, there have always been news about Coinbase tracking user transactions, but they did not do anything out of the ordinary, so users did not take it seriously. Until this BitBet user received a warning - if he continued to bet on this website, he would face the risk of having his account blocked. Then Reddit began to discuss whether the exchange had the right to track and decide user transactions. Someone even wrote an article listing the six reasons for rejecting Coinbase services. The article finally concluded that Coinbase is not suitable for Bitcoin users.

Coinbase was able to track the user's login to BitBet because BitBet publishes the wallet address on its website. For gambling websites, the most important thing is openness and transparency, so they often publish wallet addresses. This gives Coinbase an opportunity to "take advantage of the opportunity".

Coinbase's user terms have long stipulated that they have the right to track fund records for KYC purposes. In addition, the characteristics of blockchain (transparent ledgers) further facilitate this. However, if users transfer funds to their own private wallets, Coinbase has no right to interfere.

To get rid of the control of exchanges like Coinbase, you can choose Bitcoin mixing services, which can help you clear your transaction records. However, there is usually a fee. Moreover, if you really use a Bitcoin mixing service, it is equivalent to giving Coinbase an opportunity to ban your account because you are hindering the normal operation of the exchange.

In short, platforms like Coinbase can only be used for currency transactions and exchanges, and must not be used as wallets. Keeping money in a third-party wallet service provider is simply asking for trouble. Because the United States has very strict supervision on Bitcoin exchanges.