Bitcoin Forum

According to the National Post media outlet, the Canada Revenue Agency (CRA) has recently made a formal request to a judge of the Federal Court of Canada to compel the Coinsquare Canadian crypto trading platform to provide information and certain documents regarding all its customers starting from 2013.

Full article https://blockchain.news/news/canadian-tax-agency-coinsquare-crypto-exchange-hand-clients-personal-data

Such platforms do not care about customer privacy, so they will not resist telling the court about their clients' data, unless a part of the major clients are involved in managing the platform and have a record of tax evasion or an attempt to support terrorism.
The court will force the platform to provide the data of its customers. Small people may be affected, but already large customers should be held accountable.

The only thing I think about on why the Canadian government do that is because they want to ask taxes on cryptocurrency activities that's why they are asking the information of the traders so that they can validate the income of individual and can ask some bigger taxes on the users.

When government do ask out about handling over those clients personal data then all of the possible reasons can be tied up neither on taxation or in AML.
Platforms cant do anything about it when government do require such things and this isnt a surprising thing because government will really find a way or hole
to know to those people who are earning that much and tends to hide via crypto and since they do already have the idea on how much a certain individual can
possibly generate then their concern would be on taxation purposes in most of the time.It wont be surprising if other countries would do the same step.

 I think about on why the Canadian government do that is because they want to ask taxes on cryptocurrency activities that's why they are asking the information of the traders so that they can validate the income of individual and can ask some bigger taxes on the users.

In my opinion any government can do the same, not only Canadian. Some of them have been doing this for a long time, not all information made to public. Who would think that some registered exchange refuse any data to any government agency?
Just to add to my point- US law firm says IRS is coming after Coinbase users, no surprise at all.
Full article https://cointelegraph.com/news/u-s-law-firm-says-irs-is-coming-after-coinbase-users-who-evade-taxes

I've read this news online few days ago, but I'm not worried about it because centralized exchanges can already do what they like with users data and KYC informations, you must have knew this already when you decide to start trading online on centralized exchanges

I think it's time that decentralized exchanges will welcome many more users because this can make top exchanges lose many users and go for DEX instead, I personally don't always feel right when I see crypto platforms or projects asking for my identity card or other, it's never going to be in safe hand

I think there's a movement throughout the world to switch from individual government Fiat currencies to one world digital currency as part of the globalists' push for their 'New World Order.' Anonymous Bitcoin users are a thorn in the side of this plan as they can't be easily controlled, surveilled, taxed, or regulated. If the governments can't control Bitcoin I think they will eventually do everything they can to make things as difficult as possible for the anonymous Bitcoin users- by taxing them heavily, handing them fines/legal troubles, making things as difficult as possible to trade and or buy/sell BTC, etc.

And as stated above, these big exchanges don't care one bit about your individual rights and liberties...   they are all about their $$$ and if the government asks for information they will hand it over without even putting up a fight. As far as my personal Libertarian opinon- I would avoid these big exchanges and BTC companies as much as possible and try to do things person-to-person as much as you can.

All CEX are vulnerable to this, once the government where these CEXs are based asked, they cannot refuse to those request. CEXs' users should already know about this if they're reading their terms and privacy policy before/after registereing.

That's why people suggesting to migrate to DEX, but the main problem of most of DEXs are low liquidity and bad UX.

This is very alarming for some CEXs users now.  Might other governments in any country might do the same as the Canadian government.  Probably those who read this article might be worried if they care about their privacy or even others avoiding paying tax.  We know that money laundering might possibly happen especially for those big politicians that want to hide their big assets and cryptocurrency is the best tool to hide.  We can't blame if the government will take action like this.

IMO, as a good citizen, you must not evade taxes.  That's our obligation to pay tax while earning money on trading.  You should know those consequences that may happen in the future before using CEXs for trading.

If the Canadian government require that then provably there's no issue regarding on that since I think they are just seeking data's from people for certain use for example the tax payments.  But it will be alarming if this is only the rules implemented by the management since they can use our details in any platforms around.

Exchanges operate like banks without licenses. Most people hold lots of fake USD (tethers) on those exchanges too.

Most of them already demand KYC anyway. The ones that still don't ask KYC like Binance only let you play for a short period of time and then they also want a KYC check.

Don't think you are fooling the government by using crypto exchanges. They already know who you are.

This is where everything goes, the authorities want to impose taxes and obligations on everyone here. Anonymous services are the future, but how long will they last? Most likely, eventually any anonymity on the Internet will be eliminated.