Coinbase Ordered to Turn Over Identities of 14,355 Cryptocurrency Traders > IRS

[eternalgloom]

This was to be expected, I mean if you bought coins at Coinbase and weren't expecting this, you've been pretty oblivious to all the signs on the wall imo.
They already lock your account for sending coins to addresses that they don't approve of, coin mixers or even casino's, just search on Google for stories.

If anything, I hope this will encourage more people to use decentralized exchanges, they aren't really too popular at the moment.

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[Patatas]

Shouldn't this be in service discussion ? Why is coinbase being considered such an important part of bitcoin lol it is just an exchange.

This was to be expected, I mean if you bought coins at Coinbase and weren't expecting this, you've been pretty oblivious to all the signs on the wall imo.
They already lock your account for sending coins to addresses that they don't approve of, coin mixers or even casino's, just search on Google for stories.

Google ? All those links will get you back on bitcointalk.Despite of the fact coinbase works alongside NSA and the FBI,they heavily manipulate the prices of bitcoin.

If anything, I hope this will encourage more people to use decentralized exchanges, they aren't really too popular at the moment.

A good alternative to decentralized exchanges are peer to peer networks like localbitcoins.A little authority over the service but still better than sending user data to the governments.

[jerry0]

What other sites do this?  Only us sites right?  Do sites like gemini does this?

[Kronos21]

It will be a serious blow to the reputation. At a time when people used Coinbase for the exchange of bitcoins of such claims was not. It seems to me that the law should not be retroactive. Such laws should use the period since the signing of the law. As the protection of personal data? Man was not given permission to disclose such information.

[South Park]

That was really an expected move and no government would be ready to allow traders to go go without being taxed.It has only asked details of customers who have transactions more than $20,000 and i think that it would be a kind of relief for thousands of other customers who had very less amount of transactions.

it's a relief, but it's also a wake-up call. i think this whole IRS/coinbase fiasco was about shaking cryptocurrency traders into tax compliance. it was less about pursuing actual cases against traders. 2013-2015 at that threshold won't net that much tax revenue. this is about establishing precedent now and forcing today's traders in 2017/2018 into paying their taxes. if you're trading on coinbase in 2018 and not paying your taxes, you're in for a rude awakening a few years down the road.

that said, coinbase has been complying with IRS requests for years. you certainly can't trust them with your privacy, regardless of this case.

I think this is well, this was a cautionary shoot, the IRS is basically saying come to us and pay your taxes or we are going to go after you, so for all of those that need to pay their taxes please do it so you can avoid to have to deal with penalties or even jail time.

[bambazamba]

IRS has always had its eyes on Bitcoin . This was very likely to happen actually . With the massive increase of participants in the coinbase the transactions also increased . IRS  looks and seeks for one reason , a single loop hole that  may lead to some questionings on Bitcoin . Here are like 14,355 Traders . There will might be a proper investigation by IRS in this case .
This is very obvious that with the number of increase in investments and tradings in Bitcoin , the "potential" frauds and suspected transactions might also take place.

[anon516]

Can the decision be appealed? Or has Coinbase conceded now?

[BlackRock]

Should not effect many people as coinbase has already collected KYC documents and people who have bought should be very well aware that coinbase is based in US and will accessible to US regulators.Most of them have bought with tax paid money and may be holding bitcoin as investment and not for trading.Even if they are trading the must have paid taxes on profits.Even if they have not paid taxes,they will be subjected to penalty

[Kingofbitcoin12345]

This is the ultimate reason I’m not fan of Coinbase as it is centralized already.. I do have an account and used it for a while but if I have verified it then that must be the biggest mistake in my life.. In that alone I’m totally safe with this kind of privacy breach.. But still I condemn any kind of legislation or regulation this way if it was really not criminally associated with anyone.. Those must be exposed are illegally used bitcoin for criminal acts and that only be selective turn over of identity of a suspect..

[Harlot]

Some people here think that it is the government who is the one abusing their power here but its actually the government who have saved the day as the cryptocurrency traders are the ones who are getting away with big income without even being taxed. They are people who are being unjustly enriched by Bitcoim's features. Also a good job for CoinBase on having their profiles prepared.

[marky89]

Some people here think that it is the government who is the one abusing their power here but its actually the government who have saved the day as the cryptocurrency traders are the ones who are getting away with big income without even being taxed.

I guess the Bitcoin community really has strayed from its libertarian roots, eh? Now enforcing capital gains taxes on bitcoin investors is seen as "saving the day!" How far we've come in only a few years!

Personally, I don't understand why Coinbase and similar exchanges that are based in the US don't send out 1099s (to the IRS and to customers). Regulated brokers are required to do so. It's never been clear to me why these requirements don't extend to Bitcoin exchanges. I'm pretty sure that regulations will be passed which require exchanges to send 1099s if taxable transactions exceed a certain threshold.

This is the ultimate reason I’m not fan of Coinbase as it is centralized already..

I've been telling my friends for years: you should expect that any exchange licensed in the US will give your records to regulators. I remember Brian Armstrong saying something about wanting Coinbase to be "the most compliant" exchange in the space. Go figure.

[dylanbitcoin2]

Do they mean 20,000 active balance or do they mean if you purchase coins in coinbase at any time in 2015 your info is now sent to the irs?

I purchased 7 bitcoins in 2015 for $300 i think. so  $2100 worth....

now they would be worth over 70 grand!!!! so upset i know. but i been sold these on localbitcoins and i forgot my login and password to that site. so no proof that i sold them for only a few hundred....

confused if im rerpoted to the irs?? if i bought 7 bitcoins in 2015.. (they were worth less than 20 grand total. at the time)

[squatter]

Do they mean 20,000 active balance or do they mean if you purchase coins in coinbase at any time in 2015 your info is now sent to the irs?

I purchased 7 bitcoins in 2015 for $300 i think. so  $2100 worth....

now they would be worth over 70 grand!!!! so upset i know. but i been sold these on localbitcoins and i forgot my login and password to that site. so no proof that i sold them for only a few hundred....

confused if im rerpoted to the irs?? if i bought 7 bitcoins in 2015.. (they were worth less than 20 grand total. at the time)

My reading of the ruling is that you must have had $20,000 worth of transactions in any one year during the 2013-2015 period to be reported. Based on what you said, this doesn't affect you. And technically, even if Coinbase did give your info to the IRS, that info wouldn't prove that capital gains occurred since you didn't sell them on Coinbase.

That said, companies like Coinbase and Gemini work closely with law enforcement and regulators and they are tightly regulated since they are based in the US. They comply with individual requests from the IRS all the time. So you should always be ready for your exchange activity to be given to the IRS.....