Edward Snowden criticises Coinbase for backing regulation of the crypto industry

A former employee of the National Security Agency (NSA) and Central Intelligence Agency (CIA) of the United States, Edward Snowden, said that Coinbase’s excessive commitment to regulatory compliance hampers the development of the digital assets industry. This was reported by Decrypt.

“You don’t even manufacture lawn mowers; you sell them, but fine, you popularised the lawn mower — they are important and valuable. But when I buy a lawn mower, no one asks me for my passport and facial scan,” Snowden explained.

In his view, Coinbase places regulatory compliance above customer privacy, which is considered a foundational principle of cryptocurrencies.

Snowden added that anti-money laundering enforcement is a police matter, not a trading platform. He also called the KYC procedure a barrier to the crypto industry.

The expert believes that in the push to broaden the Web3-sector through regulation, companies should consider preserving the ideals that initially attracted users to the industry.

Earlier in April, Coinbase launched a new line of products, aimed at preventing illicit transactions and ensuring regulatory compliance.

In July, the cryptocurrency exchange denied accusations of selling users’ confidential data to the U.S. government.

Earlier, Snowden advised using digital assets as a means of payment, but not to invest in them. He also revealed his involvement in launching the privacy-focused cryptocurrency ZCash in 2016.

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