Kraken to Turn Over User Data to IRS Per Court Order
Meanwhile, this development comes shortly after Kraken reached a settlement with the Securities and Exchange Commission (SEC) over charges of securities law violations linked to its staking service.
The Court Order and its Objectives
The court order, issued by the United States District Court for the Northern District of California, mandates Kraken to provide the IRS with customer information for users who conducted transactions exceeding $20,000 in crypto between 2016 and 2020.
Consequently, Kraken is now obligated to disclose user names, transaction records, birthdates, taxpayer identification numbers, addresses, phone numbers, email addresses, and other documents. This court order underscores the ongoing efforts of regulatory authorities to ensure tax compliance within the crypto industry.
In addition to disclosing user information, Kraken has been directed by a U.S. federal court to release blockchain addresses and transaction hashes to the IRS. According to the court, these data elements play a crucial role in enabling the IRS to track and analyze crypto transactions.
Recommended Articles
Crypto Presale Projects For 2023 To Invest; Updated List
Must Read
Best Crypto Exchange Affiliate Programs In 2023
Must Read
Top Crypto Marketing Firms / Agencies 2023; Here’s Best Picks [Updated]
Must Read
Crypto Telegram Channels List 2023 [Updated]
Must Read
Top 10 Web3 Games To Explore In 2023; Here List
Must ReadIt is worth noting that the IRS has already obtained user data from crypto companies like Coinbase, Circle, and SFOX.
Judge Denies IRS Requests for Certain Information
During the proceedings, Judge Joseph Spero carefully evaluated the requests made by the IRS to obtain user data from Kraken. In his assessment, the judge emphasized the importance of determining whether the government’s summons were appropriately focused and necessary to achieve its intended purpose.
Specifically, Judge Spero denied the IRS’s requests for employment information and source of wealth from Kraken. Judge Spero’s ruling reflects the need to strike a balance between regulatory investigations and the privacy rights of individuals and businesses involved.
It highlights the court’s responsibility to ensure that government requests are appropriately targeted and do not exceed what is necessary to achieve their intended objectives.