Crypto Exchange Coinbase Hands Over User Data To IRS

Coinbase remains one of the biggest crypto exchanges on the planet, having served over 10million customers and exchanged over $50 Billion, the exchange is by far one of the most established services in operation. However, the exchange has been forced to hand over customer details in order to comply with local regulations amid pressure from the IRS. This comes as the IRS piled pressure on the District court allowing over 13k users data to be transferred.

Initially it seems that the IRS is attempting to crackdown on tax evasion which it believes to be rife among crypto users. Currently 13000 users are set to be affected by the move as details, not yet revealed to the public, will be sent to the agency. As seen below, this has been highlighted as a preliminary method by the state to gauge the volume of licensed crypto trade ion the country to apply tax tariffs accordingly.

“The ‘John Doe’ summons relates to the investigation of an ascertainable group or class of persons, that is, United States taxpayers who, at any time during the years ended December 31, 2013, through December 31, 2015, conducted transactions in a convertible virtual currency as defined in IRS Notice 2014-21.”

The company also released the statement below amid confusion surrounding the situation.

“If you have concerns about this, we encourage you to seek legal advice from an attorney promptly.”

To conclude, Coinbase users may see their data in the hands of the state as the IRS gains well over 13000 users details. While the impact this may have on bitcoin users is yet to be seen, many are arguing against state intervention when using a decentralized currency. NairaEX still maintains its users privacy as customers details are not stored by the company.

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Hi I'm Aleppo Allesadero a experienced bitcoin user and educator. Having worked for over a year in the bitcoin journalism ive seen bitcoin grow from strength to strength asserting its power against fiat currency. Hopefully you too can learn about this exciting new prospect which may help transform the way we see finance and economy on a daily basis.