Cryptocurrency exchange Kraken is firing back against the Internal Revenue Service (IRS), saying the agency has crossed the line with its demands, which look like an "unjustified treasure hunt."
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According to a report from Bloomberg, the US-based crypto exchange has asked a federal court in San Francisco to bar the IRS from demanding info about Kraken's accounts that did at least $20,000 of crypto trading between 2016 and 2020.
The San Francisco-headquartered exchange believes the IRS has gone beyond the boundaries set by US District Judge Jacqueline Scott Corley in 2017. Back then, the judge ruled Coinbase had to provide the tax agency with full details, including taxpayer identification number of customers who had bitcoin (EXANTE: Bitcoin) holdings equivalent of at least $20,000 or in any one year between 2013 and 2015.
Kraken says the IRS is making expansive requests on purpose and relying on a "thinner rationale."
In February this year, Kraken reached a settlement agreement with the US Securities and Exchange Commission (SEC) and paid a $30 million fine for failing to register its staking-as-a-service platform.
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