• The U.S. Internal Revenue Service (IRS) has filed a court petition to enforce its summons against the Kraken crypto exchange and its subsidiaries.
• Kraken recently settled Securities and Exchange Commission (SEC) charges it offered unregistered securities through its staking-as-a-service program and will pay $30 million in fines.
• The IRS is looking to examine Kraken’s books and papers in order to determine the identity of U.S. customers who conducted transactions in cryptocurrency for the years ended December 31, 2020, 2021, 2022, and 2023.

IRS Takes Aim at Kraken Crypto Exchange

The U.S. Internal Revenue Service (IRS) has filed a court petition seeking permission to enforce a summons for information against the Kraken crypto exchange and its subsidiaries. The IRS first issued a summons in 2021 but so far, Kraken has failed to comply with the request for documents related to customer identity and their cryptocurrency related transactions from 2020 – 2023.

Kraken Fined by SEC

Kraken recently announced it would pay $30 million in fines as part of settling Securities and Exchange Commission (SEC) charges that it had offered unregistered securities through its staking-as-a-service program for U.S customers, which will be immediately discontinued following the settlement agreement with the SEC..

What Information Is The IRS Seeking?

The IRS is looking to examine Kraken’s books and papers in order to determine the identity of U.S customers who conducted transactions in cryptocurrency during the years ending December 31st of 2020 – 2023 as well as their correct federal income tax liability associated with these activities during this time period..

Implications For Crypto Regulation

CoinDesk Global Policy & Regulation Managing Editor Nikhilesh De discussed some of the wider implications that come along with this action taken by the IRS including increased scrutiny on cryptocurrency exchanges when it comes to compliance with laws related to money laundering and other financial crimes..

Final Thoughts

This recent move by the IRS shows increased enforcement efforts concerning digital assets are likely here to stay moving forward into 2021 & beyond as regulation surrounding cryptocurrencies continues to evolve around jurisdictions all across America & elsewhere around world..