Largest Bitcoin Brokerage Coinbase Blocks WikiLeaks Purchases

in #bitcoin7 years ago

Coinbase Makes an Odd Decision
Any payment processor associated with cryptocurrencies adheres to strict guidelines. San Francisco-based cryptocurrency Coinbase is a regulated MSB under FinCEN. This is a positive development, but it can also have negative repercussions. As such, the company decided to cut off WikiLeaks completely.

According to the company, WikiLeaks poses a major violation of Coinbase’s Terms of Service. For a site selling merchandise and spreading information from whistleblowers, there appears no real ‘risk’ involved. The block by Coinbase against WikiLeaks is not a positive development whatsoever.

Whether or not the WikiLeaks shop will opt for a different payment processor, remains unclear. Coinbase is not making any friends by taking this strange course of action. They will also close the platform’s account completely as funds need to be transferred out as soon as possible. WikiLeaks will continue to accept Bitcoin donations through its website.

What Comes Next for WikiLeaks?
It is not the first time the whistleblower platform deals with payment adversity. Several years ago, PayPal, Visa, and Mastercard made it impossible for people to donate to WikiLeaks directly. At that time, the project switched to Bitcoin, as it made a lot more sense to all parties involved.

With that option no longer on the table, WikiLeaks could turn its back on cryptocurrency completely. For now, that is not the case, but it shows centralized companies in this industry can still cause a fair bit of controversy. Andreas Antonopoulos is not too amused by the Coinbase decision either.

How this will affect the cryptocurrency industry, remains unknown. Coinbase is seemingly intent on shunning any platform, company, or service which may be considered even remotely controversial. This could indicate other entities will lose access to this service as well. History has certainly repeated itself, albeit in the worst way possible.