In a recent development, United States-based cryptocurrency exchange, Kraken, has announced its compliance with a court order, which mandates the sharing of data for 42,000 users with the U.S. Internal Revenue Service (IRS). This data transfer is scheduled to take place in early November.
Kraken, known for its robust stance on privacy, outlined the origins of this action on its support page. The court order, issued by the U.S. District Court for the Northern District of California in May 2021, compelled Kraken to produce an extensive array of records and data related to its U.S. clientele and transmit it to the IRS.
Kraken, however, vehemently opposed the IRS’s demands and engaged in a legal battle to protect its users’ privacy rights. Through these legal proceedings, the exchange successfully negotiated with the IRS, resulting in a significant reduction in the number of clients affected and the volume of client data that would be shared.
This development marks a noteworthy shift in the landscape of cryptocurrency exchanges, underscoring the ongoing tension between the digital asset sector and regulatory authorities. Kraken’s decision to comply with the court order reflects the evolving regulatory environment for cryptocurrencies in the United States and the exchange’s commitment to both legal compliance and user data protection.
