July 24, 2024

Coinbase plans to automatically ban untrustworthy accounts

Coinbase plans to automatically ban untrustworthy accounts

Coinbase will complement its set of customer identification rules with an automated KYC "Know Your Own" toolcustomer. "

According to a recent patent, a newthe automated system will analyze user accounts and identify suspicious accounts, in particular suspected illegal trade. An automated and self-learning solution is created taking into account industry specifics and international regulatory requirements of regulators.

The operation of the system is based on assigning a ratingcustomer accounts based on their constant monitoring. The key rating factors will be the user's confidential data (age and location) and his trading activity. Account history, account balance, volume and activity of transactions, verification history and the number of connected devices with access will also be tracked. 

The system will differentiate trustworthy andunreliable accounts based on predefined parameters that can be updated manually, according to the patent. Suspicious accounts will be blocked automatically, and their data will be transferred to law enforcement if the transaction amount exceeds $ 2000.

There is no information yet when the platform intends to implement a system to monitor compliance with the legality of operations.