U.S. Judge Orders Kraken to Provide User Information to IRS
A U.S. judge has ruled that cryptocurrency exchange Kraken must hand over certain personal information about its users as part of an Internal Revenue Service (IRS) investigation. The IRS is specifically requesting Kraken to identify accounts that had annual crypto trading of at least $20,000 between 2016 and 2020. Kraken had previously refused to comply with the IRS’ summons, citing concerns about the burden and scope of the request.
Key Points:
– The IRS is investigating cryptocurrency transactions conducted by U.S. persons between 2016 and 2020.
– Kraken has been ordered by a U.S. judge to disclose user information, including names, dates of birth, addresses, phone numbers, and tax identification numbers.
– Kraken had previously raised concerns about the burden and broadness of the IRS’ request.
– The court document states that the IRS has a legitimate purpose for seeking the information to determine individuals’ correct federal income tax liability.
– Kraken has not yet responded to a request for comment from The Block.
Hot Take:
This ruling highlights the increasing scrutiny that cryptocurrency exchanges face from government authorities. While privacy concerns are valid, it is crucial for exchanges to comply with legitimate investigations to ensure tax compliance and prevent illicit activities. Cryptocurrency users should be aware that their personal information may be subject to disclosure in certain circumstances.
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