The exchange will be required to report information on customers who traded more than $20,000 between 2016 and 2020.

Kraken alerted users via email on Oct. 25 that it will provide certain customer information to the U.S. Internal Revenue Service (IRS). The cryptocurrency exchange said the IRS issued a subpoena in May 2021 and ordered it to provide various records and data.

Kraken explained that it sought to fight the requests in court and seek to limit the number of customers affected and reduce the amount of data involved.

Kraken said it must nonetheless provide the IRS with profile information and transaction records of customers who traded more than $20,000 between 2016 and 2020. Specifically, Kraken said it must provide users’ names, dates of birth, tax ID numbers, addresses and information, contact information, and transaction histories.

Kraken also noted that it plans to share the information covered by the court order next month, in early November 2023.

Kraken and IRS case concluded in July

Previous reports indicated that the relevant court case ended in July 2023. At that time, Kraken issued a public statement saying that it had fought the U.S. Internal Revenue Service (IRS) because the tax agency sought "intrusive and unnecessary information" about its U.S. customers.

The company is concerned that the IRS could leak that data, exposing its customers to the possibility of identity theft and other risks.

The IRS’s original order sought to make Kraken turn over users’ IP addresses, banking details, employment information and sources of wealth, in addition to more standard information the company must still provide.

These early reports suggest that Kraken must also provide certain on-chain data to the IRS — something that was not mentioned in its latest email.

Kraken is one of a handful of cryptocurrency companies that have been targeted by the IRS; others include Coinbase and Circle. However, cryptocurrency investors in the United States are generally required to report all cryptocurrency activity on their tax returns, regardless of any specific actions taken. #Kraken  #IRS