A federal court has ordered cryptocurrency exchange Kraken to turn over account and transaction information to the Internal Revenue Service (IRS), which it says is needed to see whether the exchange’s users are underreporting taxes.
according to order release On Friday, June 30, Kraken was asked to provide details of users who made more than $20,000 in transactions in a calendar year, including their names (real or pseudonym), date of birth, taxpayer identification number, address, phone number, email Email addresses and various other information. document.
In February, shortly after Kraken settled allegations that its staking service violated securities laws with the Securities and Exchange Commission (SEC), the Internal Revenue Service (IRS) filed a petition in the Northern District of California. The IRS claims it issued a subpoena to Kraken in 2021, but the exchange failed to comply and is now seeking to investigate the potential tax liabilities of users who traded cryptocurrencies between 2016 and 2020.
Additionally, Kraken will be required to publish blockchain addresses and transaction hashes that are already included in the transaction data available for sharing. Exchanges may also be required to provide raw data to the IRS.
Judge Joseph Spero, presiding over the case, appeared to reject the IRS’ attempt to get Employment information and sources of wealth from Kraken. The judge flatly denied several of the IRS’ requests.
In the judge’s assessment of certain IRS requests, he said the court needs to determine whether the government’s subpoena has an appropriate focus, meaning it should not go beyond what is necessary to achieve its intended purpose.
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According to the court’s findings, the first three requests sought to identify Kraken account holders who met DOE’s definition, but sought information that was too broad and beyond what most DOE users would need to determine their identity.
Friday’s ruling sided with the administration and comes amid a growing U.S. crackdown on cryptocurrencies. The SEC filed separate lawsuits this month accusing Coinbase of operating an illegal exchange and accusing Binance.US of mishandling customer funds, misleading investors and regulators and violating securities rules.
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