Crypto Exchanges Provide ATO, US Secret Service With Trade Data & Analysis Tools

Cryptocurrency is widely touted as a pseudo-anonymous means of value transfer free from the restrictions of government bodies and related oversight. Anonymous digital currencies, however, are only as private as the platforms that are used to trade them.

Government bodies around the world, including the Australian Taxation Office, now have access to a broad spectrum of data delivered to them by major exchanges such as Coinbase — including advanced blockchain analysis tools.

US Secret Service Gains Access to Blockchain Analysis Tools

Recent public records published by the US Government reveals that the US Secret Service, part of the US Department of Homeland Security, has signed a four-year agreement with Coinbase that will provide the agency with access to the platform’s advanced blockchain analysis software.

Coinbase Analytics is a cryptocurrency analysis platform that allows government agencies and other parties to track the flow of cryptocurrency across multiple blockchains, facilitating the identification of cryptocurrency users by linking transactions and wallets to specific exchange accounts and fiat/crypto bridges.


ATO Leverages Exchange Data to Target Aussie Traders

The US Government isn’t the only authority making use of cryptocurrency exchange data. The Australian Taxation Office now has access to bulk records from Australian cryptocurrency exchanges, which is used to ensure that Australian crypto traders are meeting their tax obligations.  

The ATO currently operates a joint effort with the Australian Transaction Reports and Analysis Centre (AUSTRAC) and the Australian Securities and Investment Commission (ASIC) to link cryptocurrency balances and trades to Australian traders. 

While Bitcoin and other cryptocurrencies are often referred to as “anonymous” value transfer systems, there are many ways through which cryptocurrency exchange users can be tracked and identified. The ATO issued over 350,000 tax warning letters to Australian crypto traders earlier this year, demonstrating the results of exchange data gathering and analysis.

Sam Town

Sam Town

Sam Town is a FinTech and Blockchain Journalist from Adelaide, Australia. I work with a broad spectrum of finance, technology, and blockchain businesses to deliver engaging, high-quality content across a range of topics. Areas of specialization include FinTech, blockchain, NeoBanks, crowdfunding, P2P lending, tax structuring & strategy, artificial intelligence, InsurTech, and finance IoT applications.

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