Kraken to turn over select customer data to IRS after July court loss

[larry_vw_1955]

The US is one of the few countries to income-tax their citizens regardless of residency.

which is why if you're rich and american and don't particularly want to live in the usa, you might look into getting rid of that american citizenship. that's probably why so many rich people do that. for the tax benefits. and who wants to be accountable to the IRS when they're not even in the USA?

Accordingly I wouldn't be surprised if the IRS will receive data on every Kraken customer of interest, regardless of citizenship. You know, just in case there's still a US citizen hiding somewhere.

yeah they're just looking to chop somebody's head off from the sound of it. 

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[bbc.reporter]

@larry_vw_1955. If the question is if the IRS could do anything to a company that does not have any type of presence under America's jurisdiction, I reckon not directly and it would be very complicated. It would be much easier for them to enforce the rules on American citizens.

However, is Kraken not an exchange based in San Francisco, California? The founder Jesse Powell is also an American, I reckon.

Kraken used to be based in San Francisco but they pulled out:

https://cointelegraph.com/news/kraken-shuts-down-global-headquarters-as-san-francisco-is-not-safe

“We shut down Kraken’s global headquarters on Market Street in San Francisco after numerous employees were attacked, harassed and robbed on their way to and from the office.”

However they still say they are a US based entity:

"While we [Kraken] have no plans to change our status as a US-based entity, the location of our headquarters doesn’t affect how we run our business."


If Jesse is American then even if they weren't a US based entity, I think they would be subject to the IRS just because of him. And if he flouted the law then I guess if he stepped on American soil they could arrest him at the airport type of thing.

So unless he also relinquished his american citizenship it wouldn't matter what type of entity they were and where they claimed or considered themself to be based.

Thank you for the information. This makes it appear that the IRS can do anything they want concerning their request for turning over Kraken customer data to them. I would not use this exchange if I was located or living in the Middle East hehehe. The American government might be using the IRS to crackdown on terrorist funding.

[HeRetiK]

The US is one of the few countries to income-tax their citizens regardless of residency.

which is why if you're rich and american and don't particularly want to live in the usa, you might look into getting rid of that american citizenship. that's probably why so many rich people do that. for the tax benefits. and who wants to be accountable to the IRS when they're not even in the USA?

Which is also why the US is one of few countries that charge an expatriation tax. The IRS definitely does not one let go off easy.

I'm no US citizen myself, but the amount of red tape that is involved when doing business with an emigrated US citizen as a (non-US) bank or tax accountant is quite staggering, from what I've heard.

[larry_vw_1955]

Which is also why the US is one of few countries that charge an expatriation tax. The IRS definitely does not one let go off easy.

yes, that's what i have heard but say someone sells all their assets like houses and boats and just moves out of the USA and gets citizenship in another country  then i don't see how the IRS can do anything to them. they'll ignore filing tax returns, not have anything to do with the USA ever again and the IRS won't really be able to touch them. unless they get back on a plane to Philly. then all bets are off.   oh and don't make youtube videos bragging about how you never pay any taxes or file any tax returns. that goes without saying though.

I'm no US citizen myself, but the amount of red tape that is involved when doing business with an emigrated US citizen as a (non-US) bank or tax accountant is quite staggering, from what I've heard.

which is why you get citizenship in that other country and don't even say the word "american" ever again?

[zasad@]

https://www.msn.com/en-us/money/markets/the-sec-sues-kraken-again-this-time-for-running-an-unregistered-crypto-exchange/ar-AA1kitRP
The SEC Sues Kraken Again—This Time For Running An Unregistered Crypto-Exchange

"The U.S. SEC has charged Kraken with operating an unregistered securities exchange, broker, dealer, and clearing agency.
This lawsuit against Kraken is similar to charges filed by the SEC against crypto exchanges Binance, Bittrex and Coinbase earlier in the year.
The lawsuit also alleges Kraken commingled customers' crypto assets and cash reserves with their own holdings.
Earlier this year, Kraken paid a $30 million settlement for charges related to its staking-as-a-service offering.
The U.S. Securities and Exchange Commission (SEC) fired a fresh salvo in its cryptocurrency crackdown on Monday when it sued Kraken for operating an unregistered securities exchange and allegedly mixing customer funds with its own."

https://www.courtlistener.com/docket/68023155/securities-and-exchange-commission-v-payward-inc/

[CRAIC]

Jesse Powell should move his exchange offshore so as not to be tormented of US regulatory requirements

[larry_vw_1955]

https://www.msn.com/en-us/money/markets/the-sec-sues-kraken-again-this-time-for-running-an-unregistered-crypto-exchange/ar-AA1kitRP
The SEC Sues Kraken Again—This Time For Running An Unregistered Crypto-Exchange

oh boy, the bad news just keeps a coming.   America doesn't like progress we don't want crypto exchanges here. Isn't that obvious by now? Or i guess it's just that the government needs to get its cut. Kind of like gangsters who own the neighborhood and extort mom and pop shops for "rent"...

[zasad@]

https://www.msn.com/en-us/money/markets/the-sec-sues-kraken-again-this-time-for-running-an-unregistered-crypto-exchange/ar-AA1kitRP
The SEC Sues Kraken Again—This Time For Running An Unregistered Crypto-Exchange

oh boy, the bad news just keeps a coming.   America doesn't like progress we don't want crypto exchanges here. Isn't that obvious by now? Or i guess it's just that the government needs to get its cut. Kind of like gangsters who own the neighborhood and extort mom and pop shops for "rent"...

Let's be honest and say that the American government does not need disloyal exchanges on the American market. Other American exchanges do a great job in the American market, but I wouldn't trade on them. And here my complaints are not only against the American government. Binance and other exchanges very flagrantly violated American laws and thought that they could get away with it.
This is how you can work in Russia, but it won’t work in America.