kraken customer data

IRS gets permission to demand Kraken crypto traders customer data

The US Inland Revenue (IRS) have obtained a federal court order to demand customer data from cryptocurrency trading platform Kraken in an attempt to crackdown on unreported tax.

The Northern District federal court of California issued what is known as a “John Doe” summons on parent company Payward Ventures Inc and Kracken. The IRS is seeking information on American users who have conducted at least $20,000 or equivalent in cryptocurrency trades between 2016 and 2020 on the platform.

The John Doe order is the name given to an order where specific individuals have not been identified. The documents filed state that the request is part of an “ongoing, extensive investigation” involving convertible cryptocurrencies (that is digital assets which are able to be exchanged for fiat currency. This includes Bitcoin, Ethereum and some other Altcoins.

“There is no excuse for taxpayers continuing to fail to report the income earned and taxes due from virtual currency transactions …. This John Doe summons is part of our effort to uncover those who are trying to skirt reporting and avoid paying their fair share.”

Chuck Rettig, IRS Commissioner

This is not the first time the IRS has gone after platforms. Previously, Coinbase and Circle (a blockchain based payment platform) have both been subject to scrutiny with requests for customer data to be made available to US authorities.

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