Crypto exchange Kraken must provide a wide variety of information about its users to the Internal Revenue Service (IRS), according to a decision in the US District Court for Northern California yesterday.
According to a court on Friday presentationThe company must present the complete documentation for any kraken user who bought, sold, or traded at least $20,000 worth of cryptocurrency between 2016 and 2020. Complete documentation includes name, taxpayer identification number, physical address, phone number, email addresses, and transaction book.
Even so, Magistrate Judge Joseph Spiro denied a series of separate IRS petitions, including requests for information on money laundering activities, clients' net worth, and their source of wealth, among others.
Karen Cincottathe IRS agent leading the case, has stated that the platform has more than 4 million users and has processed $140 billion since it opened in 2011. However, according to Cincotta, only 288,330 clients have filed official tax returns. , a number "dwarfed by the amount of trading activity that happens on Kraken."
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Payward Ventures Inc, which operates Kraken, one of the third largest in the world exchanges according to Coingecko, it has been struggling government agency for some time. Last April, a judge delayed against IRS demands to review Kraken records, though a higher court gave the IRS a green light to proceed with your inquiry.
The company has repeatedly denied previous IRS requests for information, as well as other subpoenas filed by the agency. However, he posted a crypto tax guide in April.
Yesterday's resolution comes amid a widespread regulatory debate. Campaign on various cryptocurrency platforms. The United States Securities and Exchange Commission (SEC) has taken coin baseโwidely named in the Kraken investigationโ to court for allegedly offering unregistered securities, as well as Binance US Branch.
Kraken has been in constant flux with regulators over the past few months. The second delivered a $30 million fine ordering it to stop its staking service earlier this year, and the company has been trying to gain access to the Federal Reserve's payment system in vain.
