Users of Coinbase wallet can currently back up their private keys on Google Drive or iCloud, as per an official announcement on February. 12.

In the statement, Coinbase states that permitting users to transfer their keys to a cloud provides a safeguard against lost keys, can will facilitate them avoid losing funds ought to the keys be misplaced. The announcement notes:

“The private keys generated and stored on your mobile device are the sole way to access your funds on the blockchain. owners of ‘user-controlled wallets’ like Coinbase wallet generally lose their devices or fail to backup their 12 word recovery phrase in a safe place, so losing their funds forever.”

Now, users of Coinbase wallet will store an encrypted copy of the recovery phrase on their cloud accounts. Coinbase notes that neither they nor the cloud services can have access to user funds, as recovery phrase key is unlocked by a password known solely to the user. The backup is purportedly encrypted with AES-256-GCM encryption, that is just accessible through the wallet mobile app.

Coinbase notes that, in addition to Google Drive and iCloud, they'll expand support to different clouds within the future. The feature is an opt-in service that doesn't replace or supersede the original recovery possibility.

Earlier this month, Canadian cryptocurrency exchange QuadrigaCX filed for mortal protection following the death of its founder Gerald Cotten. Cotten was reportedly the sole executive to blame for the exchange’s keys and cold wallets, and following his death, the exchange has been unable to access $145 million in digital assets it supposedly has to remain solvent.

Today, it had been discovered in an Ernst & Young report that the ‘Big Four’ audit firm — that was named an observer to Quadriga’s creditor protection proceedings — has recovered many electronic devices utilized by Cotten, as well as encrypted USB keys.

In January, Coinbase additional resources for customers within the u. s. to assert crypto trades on their taxes. The cryptocurrency exchange and wallet service additional an academic guide on crypto and taxes, additionally to integrating with popular tax software system TurboTax.

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