The United States Patent and Trademark Office has awarded one of the most prominent crypto exchanges in the country, Coinbase, a patent that portrays a mechanized framework that identifies and detects non-compliant client accounts on the platform.Filed on Nov. 19, the patent describes the significant improvement made to improve the level of security as regards customer account authorization, thereby explicitly identify the ones associated with dealing in criminal behavior.Coinbase has been known in recent times for always giving high priority to the security of users’ accounts in the crypto world where cyber theft and crypto-jacking has been a thing of repeated occurrence. It appears that Coinbase plans to adopt and implement such a framework in its platform.Removing Non-Compliant
Topics:
Adedamola Bada considers the following as important: Blockchain News, coinbase, Companies, News
This could be interesting, too:
Chimamanda U. Martha writes Man City and OKX Roll Out Limited Edition NFT Collection for Football Lovers
Bena Ilyas writes Bitget Report: Middle East Crypto Market Surges by 166% YoY
Godfrey Benjamin writes Celo Developer cLabs Proposes Ethereum Layer 2 Chain Development Using OP Stack
Steve Muchoki writes Binance Exec, Who Fled Nigeria, Denies Report of Extradition from Kenya
The United States Patent and Trademark Office has awarded one of the most prominent crypto exchanges in the country, Coinbase, a patent that portrays a mechanized framework that identifies and detects non-compliant client accounts on the platform.
Filed on Nov. 19, the patent describes the significant improvement made to improve the level of security as regards customer account authorization, thereby explicitly identify the ones associated with dealing in criminal behavior.
Coinbase has been known in recent times for always giving high priority to the security of users’ accounts in the crypto world where cyber theft and crypto-jacking has been a thing of repeated occurrence. It appears that Coinbase plans to adopt and implement such a framework in its platform.
Removing Non-Compliant Accounts
The patent involves the determination of a “compliance score for each one of the accounts based on the respective factors associated with the respective account.” After that, the system likens the consistency score of account to determine those that fail to comply with the regulatory standards set by the platform as well as regulatory bodies in order to root out rebellious client accounts.
It relegates a general compliance score from an assortment of components, as indicated by the patent portrayal, which are focused on client-inputted or executed information such as client’s age, access location, account balance, exchange volume, confirmation history and the number of devices linked to the account.
An excerpt from the patent reads:
“An investigator may be able to determine whether an account is being used for illicit activities by doing research on the parties of the transaction who receive or send payment and determining whether such parties are regularly involved in illicit activities. It may, for example, be relatively easy to determine that a party sending or receiving payment is in the business of conducting online services that may be illegal.”
Although the exchange itself determines other several factors, the compliance enforcer also goes a step further by gauging the degree of “due diligence that has been performed on the respective account,” and any previous history of consistence survey in deciding whether the record is valid or not.
According to the patent, the valid records go through untouched while invalid ones are suspended and alluded to law enforcing agents if the transaction involves more than $2,000.
The patent also indicates that, as an expert system, the framework figures out how to distinguish from several sets of suitable query sets. The system continually refreshes its compliance model from the information gathered and the previously flagged user accounts.
Damola is a crypto enthusiast, marketer, and writer who is seeking to achieve career excellence through positive contribution to the organization that aspires for excellence.