Member-only story
Kraken Ordered to Turn Over Its Users’ Information to the IRS
In a significant development in the ongoing battle between cryptocurrency exchanges and regulatory authorities, the popular cryptocurrency exchange Kraken has been ordered by a judge to provide extensive user information to the Internal Revenue Service (IRS). The court order, part of the IRS’s investigation into underreported tax liability, demands data from Kraken accounts that conducted at least $20,000 worth of cryptocurrency trading annually between 2016 and 2020. Kraken, known for its robust stance on user privacy, had fiercely contested the agency’s summons, labeling it an “unjustified treasure hunt.” This ruling is the latest move in the deepening crackdown on digital currencies in the United States.
The IRS’s Investigation and its Demands
The Internal Revenue Service, the principal tax collection agency in the United States, has been stepping up its efforts to enforce tax compliance within the cryptocurrency industry. The agency’s investigation into underreported tax liability has led it to target Kraken, one of the largest and most reputable cryptocurrency exchanges. The IRS has demanded extensive information from Kraken, focusing on users who conducted cryptocurrency trading exceeding $20,000 in any single year between 2016 and 2020.
