Circle and Poloniex Will Share User Identities With IRS

Circle and Poloniex Will Share User Identities With IRS

News

Key Takeaways

The IRS has gained authorization to order two companies, Circle and Poloniex, to share data on U.S. based investors. The regulator is seeking data on US taxpayers who made transactions of at least $20,000 between 2016 and 2020. U.S. regulators have many tax efforts underway.

Share this article

The IRS will likely gain access to records from two crypto companies, Circle and Poloniex, to root out tax evasion among U.S. investors.

Circle and Poloniex Will Share Data

According to the U.S. Department of Justice (DoJ), a federal court in the District of Massachusetts has authorized the Internal Revenue Service (IRS) to issue summons to Boston-based blockchain payments firm Circle and its former subsidiary Poloniex.

The legal action will ask Circle and Poloniex to share data on U.S.-based customers who conducted crypto transactions worth at least $20,000 between 2016 and 2020.

This type of order is known as a John Doe summons, an investigative tool deployed by the IRS to seek data on specific U.S. individuals who may have failed to comply with federal tax laws.

“The John Doe summons is a step to enable the IRS to uncover those who are failing to report their virtual currency transactions properly. We will enforce the law where we find systemic non-compliance or fraud,” IRS Commissioner Chuck Rettig wrote.

The DoJ’s official announcement clarified that it does not allege that Circle was involved in any wrongdoing. Instead, the action is part of an “investigation of an ascertainable group or class of persons” that the agency suspects are non-compliant with U.S. tax laws.

Regulators Have Other Tax Efforts Underway

The order is another example of how U.S. regulators have increased their efforts to monitor the cryptocurrency sector. In previous years, crypto exchange Coinbase has become well known for cooperating with the IRS and reporting user trading activity.

Separate from the IRS’s efforts, the U.S. Treasury and FinCEN plan to enforce KYC rules for self-hosted crypto wallets. The regulation would make it mandatory for cryptocurrency firms in the U.S. to record personal data associated with transactions above $3,000 and report crypto transactions over $10,000.

At the time of writing this author held Cosmos.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Circle Using USDC Stablecoin to Aid Venezuela Crisis

Circle is partnering with the Bolivarian Republic of Venezuela and Airtm to distribute its stablecoin USDC.  Organized with support from the U.S. government, the initiative has been conceived as a…

Visa Issuing Card for USDC Payments on Ethereum

Visa is doubling down on stablecoins.  The credit card giant has announced a collaboration with Circle, the team behind the Ethereum-based token USDC. The partnership will give Visa’s network of…

What Are Non-Fungible Tokens (NFTs)?

Tokenization is well-suited for commodities like fiat currencies, gold, and physical land. A fungible asset’s representation on blockchain makes commodities tradable 24/7 via borderless and frictionless transactions. Fungible goods are…

Coinbase Urges FinCEN to Reconsider Rushed Crypto Regulations

Coinbase penned a letter to Kenneth Blanco, FinCEN’s director, in which the firm urged the regulator to reconsider their drastic proposal and extend the comment period to 60 days.  FinCEN…

American Regulators Warm up to Crypto, Banks Authorized to Hold Stable…

The U.S. Office of the Comptroller of the Currency (OCC) cleared national banks and Federal Savings Associations (FSA) to hold stablecoin reserves. Further, the SEC also moved to ease the…


Source link

Latest Crypto News


Popular Links

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments