Internal Revenue Service (IRS) is looking after to cryptocurrency transactions.
The growing popularity contributed to the increasing curiosity of IRS towards cryptocurrency.
It can be remembered that in 2017, Bitcoin and altcoins enjoyed a break-out year.
Recently, the popular cryptocurrency exchange Coinbase capitulated to the IRS and the courts and announced that it would send requested transaction information on approximately 13,000 of its users. This is to comply with a court order issued in November.
“Coinbase fought this summons in court in an effort to protect its customers, and the industry as a whole, from unwarranted intrusions from the government,” the company wrote in its announcement to customers.”
For Coinbase, this move represents the latest in a string of bad news for the exchange.
A few weeks ago, a number of users expressed their frustration after the exchange inadvertently charged them multiple times for past purchases. Then last week, competitor Circle bought the exchange Poloniex, in an effort to compete with Coinbase’s scale.
IRS’s victory represents the latest blow to the perceived independence of cryptocurrencies, which are in the crosshairs of a growing number of regulators around the world.
Last year, the 10 best-performing cryptocurrencies posted average price gains of 14,000%, versus the 20% returns for the stock market.
Yet few taxpayers appear to be reporting their crypto trades.