We just lately introduced the acquisition of Neutrino, a blockchain analytics firm. I’d prefer to share a little bit of the again story on this acquisition, and a call we’ve made going ahead.
Our mission as an organization is to create an open monetary system for the world. To do that, step one is to empower as many individuals as doable to get entry to cryptocurrency. Since a lot of the cash on the planet is tied up within the conventional monetary system, this implies we have to connect with that system, and be compliant with all legal guidelines and laws as a monetary service enterprise. Any cryptocurrency change that touches the banking system should implement a know-your-customer (KYC) and anti-money-laundering (AML) program, and a key a part of these applications is blockchain analytics.
Till just lately, we labored with a number of exterior distributors that present blockchain analytics, as most exchanges do. Nonetheless, they didn’t assist all of the property we wished to have on our platform, so we knew sooner or later that we would want to carry this functionality in home. We examined the gamers, discovered that Neutrino had a number of the greatest know-how on this space, and determined to amass them.
Nonetheless, we had a spot in our diligence course of. Whereas we regarded exhausting on the know-how and safety of the Neutrino product, we didn't correctly consider all the things from the angle of our mission and values as a crypto firm. We took a while to dig additional into this over the previous week, and along with the Neutrino crew have come to an settlement: those that beforehand labored at Hacking Workforce (even if they haven't any present affiliation with Hacking Workforce), will transition out of Coinbase. This was not a simple determination, however their prior work does current a battle with our mission. We're grateful to the Neutrino crew for participating with us on this final result.
Bitcoin — and crypto extra typically — is concerning the rights of the person and concerning the technological safety of civil liberties. Coinbase seeks to be probably the most safe, trusted, and legally compliant bridge to cryptocurrency. We generally have to make sensible tradeoffs to run a contemporary, regulated change, however we didn't make the correct tradeoff on this particular case. We are going to repair it and discover one other option to serve our clients whereas complying with the regulation.
Living up to our values and the Neutrino acquisition was initially revealed in The Coinbase Blog on Medium, the place individuals are persevering with the dialog by highlighting and responding to this story.