Kraken, a major cryptocurrency exchange, has decided to share customer data with the IRS. According to a court order, customer profiles and transaction data of those who engaged in transactions exceeding $20,000 annually between 2016 and 2020 will be sent to the IRS. This will also include customers who have not conducted any transactions other than deposits and withdrawals.
All User Information to Be Provided to the Tax Authority
According to the court decision, Kraken exchange has announced that it will provide a wealth of information about these users to the US Internal Revenue Service (IRS), such as their names, birthdates, tax identification numbers, addresses, contact details, and transaction history.
“This move came in May 2021 with a court order from the Northern District of California in the United States.”
Kraken
Preventing Tax Evasion via Crypto Transactions
The goal of providing these data to the US Internal Revenue Service is to prevent tax evasion through cryptocurrency transactions. This way, users who engage in a certain amount of cryptocurrency transactions will be encouraged to fulfill their tax obligations.
Finally, Kraken’s move is considered an important step in the regulation of the cryptocurrency world, and it is believed that this decision could shape the future regulations of the cryptocurrency market.
Source: Cointelegraph
