In 2016, the Coinbase exchange has received a request from the Federal court in California to transfer information about customers. On 29 November this year, the court ruled that Coinbase needs to convey information about 14 355 clients to the internal revenue Service (IRS). The records involved clients who either bought, sold, sent, or received more than $ 20,000 in bitcoins. Originally the IRS sought to obtain all the information about customers between 2013 and 2015 .
The new order of the court requires that Coinbase gave the IRS the names, addresses, dates of birth, taxpayer identification numbers, transaction logs, and statements of accounts of the clients which were connected with transactions, the cost of which was 20,000 USD or more. New order narrow from the initial court orders, which required all information about the client, including the relationship between Coinbase and its customers. The IRS does not base its demands for customer information for any reasonable suspicion, less likely, against any specific customers Coinbase. The IRS bases its claims on information from customers of Coinbase that just over 800 Americans reported stocks of cryptocurrencies on their taxes or, more precisely, their capital gains from cryptanalyst.
Although Coinbase advertises a new order as a partial victory, others in the world of cryptocurrencies consider new order as a huge blow to financial privacy in America. "We remain deeply dissatisfied with the lack of justification provided by the IRS. .
In a blog post made on the website Coinbase, the company pointed out that about 14 000 clients, whose information will be forwarded to the IRS are less than 1% of all Coinbase customers. The initial request for IRS records would have affected at least 500,000 customers Coinbase. The company also promised to notify all affected customers before passing any information to the IRS.
"Coinbase is in the process of consideration.At Coinbase, there are millions of customers, and narrowed the challenges that affect about 14,000 of the most successful clients from 2 to 4 years ago. This represents less than 1% of the customer base
Can the demands of the government of the United States concerning customer information Coinbase have a positive effect? Vожет if the requirements of IRS encourages users to abandon the centralized exchanges such as Coinbase and start using decentralized exchanges, such as Bisq, formerly known as BitSquare, and pseudonimie exchanges that are exchanging currencies with prepaid cards and gift cards.
Other anonymous ways to obtain cryptocurrency include sites such as LocalBitcoins and LocalMonero.
ATM Bitcoin is another private way to exchange cash to the crypt.
Source- https://www.deepdotweb.com/2017/12/16/federal-court-orders-coinbase-turn-records-14355-customers-irs/
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