Coinlab Inc., a Bitcoin services company, is partnering with the largest Bitcoin exchange in the world to facilitate Bitcoin transactions in the U.S. and Canada. The deal could promote Bitcoin use, but Coinlab's existing relationship with Silicon Valley Bank could compromise the cryptocurrency's key trait —anonymity.
Bitcoin is designed to be used for electronic payments much like cash is used in face-to-face transactions. However recent moves threaten to impair Bitcoin's cash-like anonymity by tying it to a system with stringent know-your-customer requirements. In an earlier example, a digital currency exchange brought its operations under French regulation.