Kraken asks court to deny IRS request for customer data

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Cryptocurrency exchange Kraken asks the court to recognize as illegal the request of the US Internal Revenue Service (IRS) to provide information about users of the exchange, reportsBloomberg.

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

"Instead of complying with the ground rules, the IRS is doubling rates by making even more extensive requests," Kraken said in a statement.

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

In 2022, the IRS applied to the courts for permission to obtain data on the transactions of customers of the cryptocurrency dealer SFOX and its partner M.Y.Safra Bank.IRS said it intends to identify customers of cryptocurrency platform SFOX and M.Y.Safra Bank to identify violations of tax legislation.

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