Coinbase to Send Users Data to the IRS

In the coming weeks, crypto exchange Coinbase will provide data on some of its customers to U.S. tax authorities  
26 February 2018   585

According to an email which was sent to around 13,000 customers, Coinbase confirmed that it will provide only certain information to the Internal Revenue Service (IRS). The exchange will definitely provide taxpayer ID, name, birth date, address, and historical transaction records for certain higher-transacting customers during the 2013-2015 period.

Coinbase will provide this information within next 21 days.

If you have concerns about this, we encourage you to seek legal advice from an attorney promptly.

Coinbase

This action originally started when Coinbase failed to comply with the summons. This ‘battle’ began in 2016 when the tax agency initially sought data on 500,000 Coinbase users.

According to an order from the United States District Court for the Northern District of California in November, it stipulated that Coinbase must provide data of more than 13,000 users that had seen over $20,000 trading volume from 2013 to 2015.  But in the email, the exchange claims that the number of users was reduced and it is partial, but still a significant victory.

Coinbase to Issue New Statement

As reported, company says it was wrong about SEC approval of acquisitions of Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC
18 July 2018   153

Vice President of Communications of Coinbase Rachel Horwitz denied the information that the company received approval from the Securities and Exchange Commission of the United States for a deal to buy brokerage companies. This is reported by Bloomberg.

It is not correct to say that the SEC and FINRA approved Coinbase’s purchase of Keystone because SEC was not involved in the approval process. The SEC’s approval is not required for the change of control application. Coinbase has discussed aspects of its proposed operations, including the acquisition of the Keystone Entity, on an informal basis with several members of SEC staff.
 

Rachel Horwitz

Vice President of Communications, Coinbase

On Monday, a spokesman for Coinbase said that the company received permission from the SEC and the Agency for Regulation of Financial Institutions (FINRA) to purchase Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC.

However, despite the refutation from Rachel Horwitz, Coinbase still intends to obtain a license to carry out brokerage activities.