Reported by Pedro Solimano

Crypto exchange Kraken must provide a wide variety of information about its users to the Internal Revenue Service (IRS), according to a ruling in theU.S. District Court of Northern California yesterday.

According to a Friday court filing, the company will need to produce full documentation for any Kraken user that bought, sold, or traded at least $20,000 worth of cryptocurrency between 2016 and 2020. Full documentation includes name, taxpayer identification number, physical address, phone number, email addresses, and transactional ledger. 

Even so, magistrate Judge Joseph Spiro denied a number of separate petitions by the IRS, which included requests for information on money laundering activities, clients’ net worth, and their source of wealth, among others.

Karen Cincotta, the IRS agent leading the case, has stated the platform accounts for over 4 million users, and has processed $140 billion since its opening in 2011. According to Cincotta, however, only 288,330 clients have filed official tax returns, a number “dwarfed by the number of trading activity that occurs on Kraken.”

Read full report: https://finance.yahoo.com/news/kraken-ordered-hand-over-user-235503504.html