Apr 27, 2023
Kraken Challenges IRS Over Unjustified User Information Demand
Kraken, a major crypto exchange, is taking a stand against the Internal Revenue Service (IRS) and its request for critical user information. The exchange has filed a request to a federal court in San Francisco for the agency to back off, calling the demand for customer information an “unjustified treasure hunt”.
At the center of the dispute is an IRS summons from February, which asked Kraken to provide user information for accounts that had conducted at least $20,000 in crypto trading from 2016 to 2020. Kraken’s lawyers cited the 2017 Coinbase case, in which the agency scaled back its initial demand after Coinbase’s continuous refusal, as evidence that the IRS has gone too far in its request for customer information.
Kraken is joining Coinbase in its efforts to push back against growing regulatory scrutiny from American regulators. Coinbase is currently fighting the U.S. Securities and Exchange Commission over offering crypto staking services, which the SEC alleges violates securities law. Coinbase settled with the SEC for $30 million, while Kraken has chosen to take the IRS to court.
The increasing regulatory pressure has become a major concern for crypto companies in the U.S. CEOs of major crypto companies, including Coinbase’s Brian Armstrong and Circle’s Jeramy Allaire, have warned that the growing pushback from regulatory bodies could force crypto firms to move offshore.
The case between Kraken and the IRS is set to be closely watched by the crypto industry, as it could set an important precedent for how the U.S. handles crypto regulation. The outcome of the case could have major implications for the future of the crypto industry in the U.S. and beyond.
Kraken’s decision to fight the IRS could also have a major impact on the promotion of Non-Fungible Tokens (NFTs). The exchange has been actively involved in the promotion of NFTs, and its decision to fight the IRS could have a huge impact on the NFT marketing landscape.
Kraken has been a leader in the NFT marketing space, with its Twitter NFT marketing campaigns being particularly successful. The exchange has also been working with a number of NFT marketing agencies to promote NFTs and facilitate the sale of NFTs.
The outcome of the case between Kraken and the IRS could also have a major impact on the web3 space. The exchange has been a major player in the web3 space, and its decision to fight the IRS could have far-reaching implications for the web3 industry.
The exchange has also been working with a number of web3 agencies to promote web3 projects and facilitate the sale of web3-based products and services. The outcome of the case could have a major impact on the web3 industry.
The battle between Kraken and the IRS could have a huge impact on the crypto industry and the web3 space. The outcome of the case could set an important precedent for how the U.S. handles crypto regulation, and could have major implications for the future of the crypto industry.
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