In an exclusive interview with Binary District, Michael Perklin, an expert in digital forensic examination and head of information security architecture at ShapeShift, discussed the lack of privacy in bitcoin, security issues in storing sensitive user information, and the rapid growth of the cryptocurrency market in general.
In the interview, Perklin described bitcoin as one of the most traceable currencies on the planet, due to its lack of privacy solutions and measures.
The implementation of strict Know Your Customer (KYC) and Anti-Money Laundering (AML) systems by nearly every regulated bitcoin trading platform in the market, makes it easy for government officials and law enforcement agencies to trace the identities behind bitcoin wallets and transactions.
“By storing PII on your servers, your company accepts the risk of safeguarding it for each of your customers, and if your systems are breached you not only lose your data but that of your customers as well.”
Although media coverage depicting bitcoin as anonymous criminal money has drastically decreased since 2016, Perklin emphasized that the mainstream media continues to misrepresent bitcoin as a private currency.
“Bitcoin is one of the most traceable currencies on the planet, and contrary to media misreporting over the last few years, Bitcoin is not anonymous and offers very little privacy protection to its users”, Perklin explained. “If a user values privacy above all else, face-to-face meetings where they exchange value, products, services in private will ensure digital footprints are not left behind.”