September 22, 2023

Kraken asks court to deny IRS request for customer data

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Kraken asks court to deny IRS request for customer data

Cryptocurrency exchange Kraken is asking the court to invalidate the request of the US Internal Revenue Service (IRS) to provide information about users of the exchange, reports Bloomberg.

The court will hold a hearing in the case in May to hear arguments from both sides.

“Instead of following the basic rules, the IRS is doubling down on even broader requests,” Kraken said in a statement.

The IRS said it was looking for Kraken accounts with at least $20,000 in crypto, as well as transactions from those accounts between 2016 and 2020.

In 2022, the IRS turned to the courtsfor permission to obtain data on the operations of clients of the cryptocurrency dealer SFOX and its partner M.Y. Safra Bank. The IRS has stated that it intends to identify clients of the cryptocurrency platform SFOX and M.Y. Safra Bank to identify facts of violation of tax laws.

Last fall, Kraken agreed withUS Department of the Treasury for a fine for violating sanctions. At the same time, the management of the site voluntarily disclosed the facts of sanctions violations and, after some negotiations, agreed to a fine of $362,000. Also, an agreement was made to invest an additional $100,000 in their compliance system.