United States-based crypto trading platform Kraken is objecting to requests from the federal government's Internal Revenue Service, the IRS.
The stock market, which is trying to find a break in the government investigation launched in the past weeks, wants the IRS to abandon its demands. The Internal Revenue Service, on the other hand, requests the information of all users with tax liability from the exchange.
Requesting important data from Kraken in February, the IRS wants to identify customers who traded more than $20,000 in crypto from 2016 to 2020 and examine their receipts. Kraken, on the other hand, claimed that this request exceeded the authority of the institution and had no legal basis.
The US-based crypto exchange included the following statements in the file it submitted to the court:
“The IRS is trying to corner cryptocurrency exchanges by making unreasonable demands.”
Officials emphasized that the request was not valid, referring to a similar situation that happened to Coinbase a long time ago.
Government Pressure on Kraken!
According to crypto followers, Kraken has a daily trading volume of $650 million. The Securities and Exchange Commission SEC considered Kraken's staking service as a security and imposed a $30 million fine. The crypto platform, on the other hand, had to suspend its passive income tools.