- Kraken is ready to provide the Internal Revenue Service with account and transaction information requested by a federal court.
- The IRS claimed that Kraken is obligated to provide information for users who conducted transactions exceeding $20,000 between 2016 to 2020.
- Exchange tokens have taken a hit with CRO, SNX, 1INCH and LRC prices declining over the past week.
Kraken, a US-based cryptocurrency exchange, is set to share transaction records and information with the Internal Revenue Service. The exchange is responding to the order of a federal court.
The crypto exchange is obligated to provide the IRS, information and details on transactions by users that exceeded $20,000 in the calendar year between 2016 and 2020.
Also read: DeFi platform Poly Network hacked, hackers issue millions of tokens on Metis, Polygon and BSC
Kraken complies with court order, ready to submit user records to IRS
With the US Securities and Exchange Commission’s (SEC) crackdown on cryptocurrency exchanges and projects, the crypto ecosystem suffered a steep decline in market capitalization and altcoin prices.
Exchange tokens reeled from the impact of the SEC’s clampdown on crypto. Kraken’s decision to turn over transaction information to the court has likely increased the selling pressure on exchange tokens.
Over the past week 1inch (1INCH), Loopring (LRC), Synthetix Network (SNX) and Cronos (CRO) nosedived 6.6%, 5.5%, 3.2%, and 3.2% respectively. Exchange tokens are struggling to recoup their losses as market participants digest the news of Kraken sharing user details such as name, birthdate, taxpayer identification number, address, phone number, email address, and other relevant documents with the IRS.
The IRS needed the information to investigate tax underreporting by Kraken’s users. Kraken’s response and information sharing is the result of an IRS' court petition from February.
Kraken reportedly has 9 million users worldwide and the exchange has a quarterely trading volume of $207 million. The cryptocurrency exchange platform has over 135,000 unique users from the US, according to the SEC.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.