The legal case that has been existing between Coinbase and IRS regarding disclosure of private user information has been won by coinbase. The government wanted information of over 500,000 users in its attempt to catch those evading tax. During The period of the court battle, IRS reduced the request to about 14,000 users which can be estimated to around 97% reduction according to Coinbase.
According to information reaching us from Coibase the documentation required by IRS has also dramatically reduced. The information released by Cryptocyrrency exchange company did not show the criteria used to arrive at the high volume 14,000 users whose information is required. The company also did not reveal the exact information that is required by the tax agency.
The win by Coinbase which is one of the biggest cryptocurrency exchanges is seen as a good step in cryptocurrency tax consideration. According to Coinbase many companies just give information to IRS instead of maintaining user privacy.
According to the statement by Coinbase: “This process by Coinbase started more than 12years ago. Even though the victory we obtained today is not the complete victory we wanted, it represents a good substantial victory. The victory is for the industry and the many customers who would have become a target. Even though we not very happy not to have won the entire case we are happy for fighting for our customers and also happy for the result we got against a large government agency like IRS.”
According to coinbase, they would first give requests for information to the final 14,000 users. They have to inform the users before they can disclose the information to IRS. The copmany staff are currently looking and evaluating the legal order before the next course of action. The company is not expected to give all information to the government agent as they still want to ensure customer privacy of information is maintained.