Coinbase lawyers should have their work cut out right now. First of all, there is the SEC which is preparing to attack the American exchange in court due to violation of securities laws. While waiting for the American policeman to shift into high gear, another file against Brian Armstrong’s company is born. Zoom !
Coinbase accused of violating biometric privacy laws
Brian Armstrong was clear on the subject: if the SEC were to sue Coinbase after the issuance of a notification wellshe and his team will emerge victorious.
For the moment, the American regulator had been content to send him a warning.
In a publication dated May 2Cointelegraph noted that a Coinbase user filed a lawsuit against the US exchange over violation of laws on violation of privacy laws. This would relate to the fact that the crypto company, recently established in Bermuda, has collected and stored fingerprints and facial models of its customers.
However, applicable laws do not allow Coinbase to collect such data without user permission. In the event of a green light, the crypto exchange will have to:
- clearly indicate the objective of his action;
- specify the duration of storage of the biometric data of its customers ;
- mention how their photos will be used;
- and bring details on the possible destruction of this data.
The complaint mentioned in particular the following:
” Coinbase did not have a written, publicly available policy establishing a retention schedule and guidelines for the permanent destruction of biometric information.. »
Users fear for their fate
This history of violation of laws on confidential user data has already cost almost a month suspension from ChatGPT in Italy. Now that the problem is solved, Italians can once again taste the pleasures of OpenAI’s chatbot.
As for Coinbase, its Illinois-based users, filing a class-action lawsuit, pointed the finger at thelack of legality in crypto exchange practices. Because to verify the identity of a user, the latter would require biometric authentication via his mobile application.
This represents ” serious and irreversible privacy risks “, believe the complainants.
Surely, investors in Illinois will not answer the call of investment bank HC Wainwright if Coinbase does not correct its fault. Knowing that the latter has just launched a “Buy” note on Coinbase Global Inc. recently.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service ofdaily and weekly so you don’t miss any of the essential Tremplin.io!