Kraken Ordered to Disclose User Info to IRS
A federal court has ruled that cryptocurrency exchange Kraken must provide the Internal Revenue Service (IRS) with user account and transaction information.
The IRS filed a court petition in February after Kraken settled charges with the U.S. Securities and Exchange Commission related to its staking service. The tax enforcement agency alleged that it had issued a summons to Kraken in 2021, but the exchange did not adhere to the summons. The IRS aimed to identify tax liabilities for users who engaged in cryptocurrency transactions between 2016 and 2020.
As per the court order issued on Friday, Kraken is required to provide information for users who conducted transactions exceeding $20,000 within a calendar year. This includes details such as the user’s name (including any pseudonyms), birthdate, taxpayer identification number, address, phone number, email address, and various other documents.
Additionally, Kraken must share blockchain addresses, transaction hashes, and, if available, raw data for the IRS.
The court’s decision compels Kraken to cooperate with the IRS in its efforts to investigate potential tax non-compliance associated with cryptocurrency transactions.
