Kraken must provide user data to U.S. tax authority IRS

The crypto exchange Kraken must provide user data to the US tax authority IRS. This was decided by a California court.

The crypto exchange Kraken must turn over user data to the US Internal Revenue Service (IRS). This was decided by a California court.

However, it does not involve all user data, but only that of investors who made transactions within a year worth more than US$20,000, so court documents show.

The reason for the decision was to ensure that Kraken users had not evaded taxes. The data to be transferred includes names, dates of birth, tax identification numbers and addresses.

In addition, Kraken must also provide blockchain and transaction data. However, the judge did not address the IRS's request for additional data on the users' employers and the source of the money used.

The competent judge had also advised the IRS to collect only the user data that was absolutely necessary for identification.