Bitcoin exchange Kraken to probe user accounts after U.S. court dictum

Hey there! Before reading the article which is about Bitcoin exchange Kraken to probe user accounts after U.S. court dictum, you should read about is bitcoin safe. It shares basic information about this article and also adds more value to it. Do let us know how you feel about it in the comment section below. Happy Reading! Really glad that you are here.

The Kraken exchange has announced that it will begin to probe the accounts of its customers in accordance with the recent court ruling handed down by the US District Court of Florida, which decreed that the exchange must surrender records of its users to the Internal Revenue Service (IRS).

Last month, the US Court of Appeals for the Second Circuit ruled that the subpoena power of the New York District Attorney’s Office was sufficient to compel online cryptocurrency exchange Kraken to turn over information on user accounts. Kraken is not the first cryptocurrency exchange to receive a court order that requires it to release information about its users. In 2016, the IRS successfully forced Coinbase, another prominent cryptocurrency exchange, to turn over information about 14,000 user accounts.

The US Internal Revenue Service, the country’s main agency responsible for collecting taxes and administering the Internal Revenue Code, will monitor users of cryptocurrency exchange Kraken following a court ruling, Reuters reported this morning.

Tax inspector focuses on cryptocurrencies: The US Department of Justice said a federal court has authorized the IRS to send a subpoena to cryptocurrency exchange Kraken requesting information on US taxpayers who made at least $20,000 in cryptocurrency transactions between 2016 and 2020.

– Eamon Javers (@EamonJavers) May 5, 2021

The IRS is asking for information on taxpayers who made at least $20,000 worth of cryptocurrency transactions between 2016 and 2020, the Justice Department said in a statement. A federal court ruled Wednesday.

People who trade in cryptocurrencies must meet their tax obligations just like any other taxpayer, Acting Assistant Attorney General David Hubbert of the Justice Department’s Tax Division said in a statement.

Kraken was beaten by an unknown.

The so-called John Doe subpoena has been issued and seeks the identity of U.S. taxpayers who used cryptocurrencies on Kraken. The exchange is one of the largest in the country, processing over $4 billion in cryptocurrency transactions daily.

The subpoena is used by the IRS to obtain personal information on all taxpayers who fit the above description, which in this case is anyone who traded more than $20,000 worth of cryptocurrencies on Kraken.

User – Stretches

Today, a federal court in the Northern District of California issued an injunction allowing the IRS to…

Hunt for U.S. taxpayers who made cryptocurrency transactions worth at least $20,000 between 2016 and 2020 on Kraken

– Julien Bouteloup (@bneiluj) May 6, 2021

So Kraken is not the only cryptocurrency company to have received such an order. In 2016, US exchange Coinbase received a subpoena from John Doe – the IRS received information on 13,000 Coinbase users.

In another recent incident, cryptocurrency exchange Circle was targeted by the IRS to identify U.S. taxpayers who transferred $20,000 or more via cryptocurrency transactions between 2016 and 2020.

Instruments like the subpoena issued today send a clear message to U.S. taxpayers that the IRS is working to ensure they are fully compliant when using virtual currencies, IRS Commissioner Chuck Rettig said at the time.

Crypto-hard currency

The moves follow the IRS’s announcement early last year that it was creating a special task force to identify hidden cryptocurrency transactions under a special project called Operation Hidden Treasure.

According to earlier reports, the IRS claims to have hired people trained in blockchain analysis and identification of cryptocurrency transactions to determine whether or not a particular address has committed tax fraud. Let’s talk about decentralization.

Gaining an advantage in the crypto asset market

As a paying member of Edge, you have access to a deeper understanding of cryptocurrencies and context in each article.

Chain Analysis

Price snapshots

More context

Join now for $19/month View all benefits

Bitcoin exchange Kraken to probe user accounts after U.S. court dictum

Do you like what you see? Sign up for updates.

This source has been very much helpful in doing our research. Read more about how much are bitcoins worth and let us know what you think.

Related Tags:

is bitcoin safebitcoinbitcoin news todayhow much are bitcoins worth,People also search for,Privacy settings,How Search works,is bitcoin safe,bitcoin,bitcoin news today,how much are bitcoins worth

More from author

Related posts

Latest posts

The Complete Guide to Coinbase Fees (and How to Avoid Them)

Coinbase is one of the most popular cryptocurrency exchanges in the world. It’s also one of the more expensive ones. If you’re looking to...

BakerySwap Review 2021 (BAKE): [Tough Competition for Other NFTs?]

BakerySwap is a platform where users can swap their baked goods with other members. The company is currently in the process of launching its...

SushiSwap Price Prediction (SUSHI) for 2021, 2022, & 2025

SushiSwap is a cryptocurrency that was created in 2018. It has an initial coin offering (ICO) price of $0.00026 and a market cap of...