“The IRS is Now Receiving Reports from Kraken as Kraken Courts Development”
Kraken, the digital asset exchange, has announced that it will send client data to the Internal Revenue Service (IRS) starting in November. This comes after Kraken lost a legal battle with the regulator, which began in May 2021. The decision to provide client information to the IRS comes at a time when authorities are increasing their efforts to gather data on blockchain-based transactions.
Earlier this week, a letter surfaced on Reddit revealing that Kraken is required to submit client information. The exchange had been summoned by the IRS in May 2021, and the agency requested a wide range of information from Kraken pertaining to its clients. Kraken initially argued that it would maintain the privacy of its clients, but after a lengthy legal process, it was ordered to hand over information and transaction histories for clients who had transactions exceeding $20,000 in any year between 2016 and 2020. This represents one of the largest attempts by a US agency to retrieve data from blockchains. Kraken will provide client data, including names, dates of birth, tax identification numbers, addresses, contact information, and transaction histories, for the specified years to the IRS.
Kraken has recommended that its clients consult with tax advisors to determine their tax liability and report the correct information to the IRS. The exchange has also recently expanded in the European Union with the acquisition of the Netherlands-based Bitcoin Trading platform, Coin Meester B.V. Kraken is looking to increase its presence in the United Kingdom and has appointed Bivu Das as the new head of its UK operations.
While some argue that providing client data to the IRS will help identify tax evaders, others believe that the government will spend more trying to recover unpaid taxes than it will actually collect. Kraken’s decision to comply with the IRS could potentially impact its relationship with clients who valued the exchange’s commitment to privacy and data protection.
Overall, this development highlights the increasing regulatory pressure on digital asset exchanges and the need for them to navigate complex legal battles and comply with government requests for information. It also raises concerns about privacy and the balance between tax enforcement and individual rights. Kraken’s decision to concede to the IRS’s demands underscores the challenges faced by digital asset platforms in an evolving regulatory landscape..
#Kraken #Courts #Development #Kraken #Reports #IRS
Kraken, the digital asset exchange, has announced that it will send client data to the Internal Revenue Service (IRS) starting in November. This comes after Kraken lost a legal battle with the regulator, which began in May 2021. The decision to provide client information to the IRS comes at a time when authorities are increasing their efforts to gather data on blockchain-based transactions.
Earlier this week, a letter surfaced on Reddit revealing that Kraken is required to submit client information. The exchange had been summoned by the IRS in May 2021, and the agency requested a wide range of information from Kraken pertaining to its clients. Kraken initially argued that it would maintain the privacy of its clients, but after a lengthy legal process, it was ordered to hand over information and transaction histories for clients who had transactions exceeding $20,000 in any year between 2016 and 2020. This represents one of the largest attempts by a US agency to retrieve data from blockchains. Kraken will provide client data, including names, dates of birth, tax identification numbers, addresses, contact information, and transaction histories, for the specified years to the IRS.
Kraken has recommended that its clients consult with tax advisors to determine their tax liability and report the correct information to the IRS. The exchange has also recently expanded in the European Union with the acquisition of the Netherlands-based Bitcoin Trading platform, Coin Meester B.V. Kraken is looking to increase its presence in the United Kingdom and has appointed Bivu Das as the new head of its UK operations.
While some argue that providing client data to the IRS will help identify tax evaders, others believe that the government will spend more trying to recover unpaid taxes than it will actually collect. Kraken’s decision to comply with the IRS could potentially impact its relationship with clients who valued the exchange’s commitment to privacy and data protection.
Overall, this development highlights the increasing regulatory pressure on digital asset exchanges and the need for them to navigate complex legal battles and comply with government requests for information. It also raises concerns about privacy and the balance between tax enforcement and individual rights. Kraken’s decision to concede to the IRS’s demands underscores the challenges faced by digital asset platforms in an evolving regulatory landscape..
#Kraken #Courts #Development #Kraken #Reports #IRS
