Circle Informs Customers of IRS Request for Information
Crypto company Circle Internet Financial has notified its customers about a request it received from the Internal Revenue Service (IRS). The IRS is seeking documentation on US taxpayers who have made transactions of at least $20,000 per year between 2016 and 2020. Circle has stated that it will comply with the summons and provide the requested information. The company has advised customers to seek legal advice if they have any concerns.
Similar Cases Involving Kraken and Coinbase
This announcement by Circle follows similar events involving other crypto companies. San Francisco-based exchange Kraken received a summons from the IRS requesting details on customers with annual trading volumes exceeding $20,000 from 2016 to 2020. Coinbase, another publicly traded platform based in San Francisco, was also tasked by the IRS in 2018 to provide customer information.
Circle Launches EURC on Solana Network
Circle has recently launched EURC, a regulated stablecoin tied to the euro, on the Solana network. This expansion aims to enhance the utility of EURC in peer-to-peer transfers and European remittance corridors. The launch allows developers and users to interact with EURC and USDC on Solana, offering opportunities for global money transfers and financial transactions. Circle emphasizes its commitment to achieving full compliance with MiCA for EURC developers and users on Solana.
Campaign for Accountability’s Claims Against Circle and Tron
Ethical non-profit organization Campaign for Accountability (CfA) has intensified its accusations of money laundering against Circle. The CfA claims that Circle’s USDC is facilitating the financing of terrorist organizations. They have criticized Circle’s Cross Chain Transfer Protocol (CCTP), stating that it could facilitate illicit financing, especially considering Tron’s involvement in law enforcement actions related to criminal groups and sanctioned entities. Circle has denied the accusations and stated that they closed all accounts of Tron and affiliated companies in February 2023.
Hot Take: Circle Faces IRS Request, Highlights Importance of Regulatory Compliance
Crypto company Circle Internet Financial’s notification to its customers about an IRS request for information serves as a reminder of the importance of regulatory compliance in the crypto industry. The IRS is seeking documentation on US taxpayers who have made significant transactions, and Circle has stated its intention to comply with the summons. This follows similar cases involving other crypto platforms, indicating increased scrutiny from regulatory authorities. As the industry continues to evolve, crypto companies must navigate complex regulations to ensure transparency and legitimacy. While regulatory compliance may pose challenges, it is crucial for building trust and fostering widespread adoption of cryptocurrencies.
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