Monitoring Fund Movements on the Blockchain

Hi Everyone,

have a listen to this podcast.
The interviewee states that Coinbase monitors the movements of crypto even from when it has departed from your coinbase wallet.
They then block accounts if these funds are used for illegal activities (even if the fraudulent account has nothing to do with the original coinbase wallet).

Have a listen. Skip to 06:50

Im interested to know if this has to followed by Nash as well? Or maybe not since Nash is non custodial ? @canesin

https://open.spotify.com/episode/01rYDo6xqNqrYa77krOZXF?si=SQIF6kzqSBiPjC9ijniRIA

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This sounds super ridiculous. Exchanges aren’t the police. Don’t see how this is relevant to Nash :man_shrugging:

Yeah but its a compliance thing. Nash are compliant? or maybe they do not have to follow this since they are non-custodial. Lets wait for Fabio to respond

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This has little to do with compliance and more to do with paranoia or control.
Do banks monitor you to see what you are doing with your money and where you spent it after you make a withdrawal from the ATM?

We should be able to use our brains and not go into panic mode whenever someone mentions ‘compliance’. This whole idea just sounds ridiculous.

ok just relax there. No need to bring your mood to my thread. The podcast states that Coinbase only does this tracking on US customers. So theres a possibility.

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Great post… great topic !!
.
Nash pay im certain has a privacy system integrated… Nash like a bank will know where u sent funds but thats it … and not open to the public.

Now… in regards to Coinbase being able to trace what u deposit in to ur Trading/Pay account that is def not cool. and measures need to be taken . (effectively they be able to link ur cbase kyc to what ur nash balances and on it goes)

Nash should be able to add the service of obfuscating the public chain balances of users when deposits are being made from other apps. Practically that would mean your “real” address is never revealed when signing a deposit to a Nash related account.

Id be really keen to hear the response on this ! :slight_smile:

Banks most certainly do not look in to other banks customers balances… think of the ramifications when we tokenise all stocks bonds commodities and currencies . this information needs to be protected and only known by trusted parties not the general public/competitors/other intermediaries.

it certainly would be a regression in privacy from the current systems.

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Nash is a permissioned transmitter of data across blockchains thru state channels/mediated by smart contracts.

they do have to behave in a certain way aka gather KYC /ATS licence/Broker dealer/MTL… to be able to operate within the relevant legal systems and integrate with analogue fiat systems (see onramps). so i dont think non-custodial changes anything except they cant alter ledger balances of their users. but they are still an intermediary to transactions/information exchange… so yeah they have to comply

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Found it …looks like Zether is the answer… doing cross chain confidential transactions between BTC and ETH will be trippy

Ill add that no one should use any app that doesnt include confidentiality in transactions… and really (not a lawyer) should be considered illegal

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Thanks for the inputs. Very helpful.