Us-Based Crypto Exchange Kraken to release significant data to IRS - page 2.

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Quote from: Bitstar_coin on October 30, 2023, 04:46:36 PM

I know this is a few days old news but I think it is very important and sensitive information particularly about crypto users and their privacy.

According to the article, the IRS has mount pressure on kraken since May 2021 demanding the exchange hand over extensive records on a large number of its American customers. Although Kraken fought back by filling a petition against them but not enough to get the IRS off it's back.

Kraken has agreed to deliver data on users who conducted more than $20,000 in crypto transactions – including trades, deposits, and withdrawals – during any year from 2016 to 2020 according to the article which makes me wonder why stop at 2020?

According the article, increased compliance from cryptocurrency firms could compel government to enact clear and friendly policies towards crypto. Do you agree to this?

Or do see this as contradicts the ethos of financial privacy and empowerment that attracts many people to cryptocurrency?

Source

2020 most likely because IRS have filed the claim back then. Now when they got it trough, they can just demand latest data and Kraken has to comply if they want to stay open. They don't have any point to fight and use more money anymore over that. I am not sure how people think that data was private in the first place. Or why kraken lawyers thought that they had a change. You don't have to know much to understand that IRS has total legal access on those.

For someone who doesn't know, this is how every exchange operates if they want to keep working on specific area.

I see regulated DeFi and regulated crypto coming. It might be against original ethos, but i really think that this is just too big of a machine to fight against.

Bitstar_coin

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Quote from: Zaguru12 on October 30, 2023, 05:18:00 PM

Just like other users have pointed out, all this exchanges most especially those under a country’s regulations cannot beat the fact that the government will one day try to request details of its users. I somehow feel it is the main reason behind regulations of exchanges and also why the process gets complicated like that of binance US because they possible can follow some of the rules set by the government.

One thing stands, once you provide your information to any exchange just be aware that the government can simply have access to it. The lies the government will spread in getting users details will be to protect them from fraud but it easily just to spy on its citizens on that platform

Absolutely, and that also make me wonder if other countries government will adopt same method as the US Government because it seems this is mostly affecting the US branches of these exchange, binance USA also face similar regulation issues.
Are we heading towards the stage where other country's government will require same info from exchanges operating in that country. The main difference between crypto and traditional finance is the financial freedom and empowerment which users enjoy but with this type of force regulations from the government will raise concerns.

WillyAp

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I wonder why kraken holds so many years back.
In Venezuela no bank holds data over 2 years.

coupable

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Quote from: Bitstar_coin on October 30, 2023, 04:46:36 PM

Kraken has agreed to deliver data on users who conducted more than $20,000 in crypto transactions – including trades, deposits, and withdrawals – during any year from 2016 to 2020 according to the article which makes me wonder why stop at 2020?

This also raises the question about the amount because it seems to me a very small amount. The most likely hypothesis is that the authorities are searching for information related to specific users as part of investigations into a specific case or incident.
It is true that it was and still is dangerous to trust central platforms in general, especially since we are in a market that is still not completely regulated, but it is noted that users in the United States are the most vulnerable to detection and tracking. This may have advantages within certain limits, but the extent of the violation of privacy cannot be overlooked. This will not only affect the reputation of the Kraken platform. All platforms will become more unreliable.

Zaguru12

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Just like other users have pointed out, all this exchanges most especially those under a country’s regulations cannot beat the fact that the government will one day try to request details of its users. I somehow feel it is the main reason behind regulations of exchanges and also why the process gets complicated like that of binance US because they possible can follow some of the rules set by the government.

One thing stands, once you provide your information to any exchange just be aware that the government can simply have access to it. The lies the government will spread in getting users details will be to protect them from fraud but it easily just to spy on its citizens on that platform

cabron

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They are not like Binance which is not under US government jurisdiction though. They fought back for just a year and Jessie probably just thinks it's not worth it as the IRS will be poking his ass every now and then.

IRS was hiring and training more than 87K agents that will enforce their laws, I heard these agents are gonna be carrying guns this time. So those who are in Kraken I guess can expect these agents to come knocking on their doors.

You link doesn't work, here it is https://www.ccn.com/news/kraken-crypto-tax-info-shared-with-irs/

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Quote from: Bitstar_coin on October 30, 2023, 04:46:36 PM

According the article, increased compliance from cryptocurrency firms could compel government to enact clear and friendly policies towards crypto. Do you agree to this?

Crap!!

Increased compliance will spur the government to tighten the ring around privacy and anonymity and demand that everyone make their crypto transaction information available to them in real time and anyone who seeks to stay off the grid will have to do that at an increased cost as they clamp down on all privacy related services.

Everyone should consider that centralized exchanges will in the end reveal your info to the government and that's just one of the risk using centralized exchanges poses, it also exposes your information to be stolen and you're dependent on their security network, not something you want to do with a decentralized asset.
You also don't own the keys.

Bitstar_coin

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I know this is a few days old news but I think it is very important and sensitive information particularly about crypto users and their privacy.

According to the article, the IRS has mount pressure on kraken since May 2021 demanding the exchange hand over extensive records on a large number of its American customers. Although Kraken fought back by filling a petition against them but not enough to get the IRS off it's back.

Kraken has agreed to deliver data on users who conducted more than $20,000 in crypto transactions – including trades, deposits, and withdrawals – during any year from 2016 to 2020 according to the article which makes me wonder why stop at 2020?

According the article, increased compliance from cryptocurrency firms could compel government to enact clear and friendly policies towards crypto. Do you agree to this?

Or do see this as contradicts the ethos of financial privacy and empowerment that attracts many people to cryptocurrency?

Source

Topic: Us-Based Crypto Exchange Kraken to release significant data to IRS - page 2. (Read 159 times)