Possibly, it is yet another example of the government’s commitment to harvesting the taxpayer sphere in efforts to make most out of regulations.
The US crypto exchange Kraken is set to comply with a court order received from the US District Court for the Northern District of California, requiring it to share 42,000 users’ data with the Internal Revenue Service (IRS) come early November 2021. The summons demands an array of data records that include names, birth dates, addresses, tax identification, contact information, transaction history, and even those clients that show a balance of more than one million dollars across transaction activities of 2016-2020. Though initially objecting to the summoning, Kraken eventually confirmed the demands and lead to a lowered number of clients forced to comply.
It echoes a similar involvement with cryptos back in 2018, when the IRS required the user data of more than 13,000 Coinbase customers as the US progress on regulations governing the sector. The situation is yet another indication of the government’s commitment to tax policies, keen on reaping in the tax protection span.
