IRS goes after crypto exchange Kraken in pursuit of customer information
The U.S Internal Revenue Services (IRS) has taken a major step in their ongoing efforts to obtain information from Kraken, one of the largest and oldest crypto exchanges.
A petition was filed by the IRS seeking court approval for a summons last week, right after Kraken announced its settlement with the SEC (Securities and Commissions) related to its offering of unregistered securities. According to the petition, the IRS is trying to determine the federal income tax liability of Kraken users who had made crypto transactions from 2016 to 2020.
According to reports, the IRS had first issued the summons in 2021, but Kraken had failed to comply. Despite multiple discussions, the non-compliance continues to this date.
A Kraken spokesperson has since addressed the issue, claiming that they were aware of the summons and including a public reassurance of the exchange’s principles on privacy.
Is compliance still an issue?
There are certainly perks to using a crypto exchange. It’s convenient and accessible – some may even provide financial benefits. But after the blowout of FTX, a, previously, even larger platform than Kraken, users have been approaching private exchanges with renewed caution.
That is understandable since crypto exchanges are subject to various laws and regulations and share information with government agencies, such as, you guessed it, the IRS. Failing to do so as a platform not only defaces their credibility, but also poses a danger to users.
Before putting your valuable assets into a crypto exchange, it’s important to do adequate research to understand their history of compliance as well the level of privacy and security they offer.
A licensed custodian may provide a solution
The fallout of one of the largest crypto exchanges marked somewhat of a new era for traders and coin-based businesses, so it’s no surprise that big techs, even banks, are turning to crypto custody.
A qualified custodian uses powerful security measures to protect your digital properties. Crypto assets are kept segregated from other clients’ and each transaction must go through multiple layers of approval. Regulators have also begun auditing companies with assets on crypto exchanges, and with a custodian, a record of compliance is always accessible.
Another great thing about crypto custody is your properties stay within your control and never leave your workspace without your permission. One can say custodians do the exact opposite of what traditional banks do with customers’ money.
Atato is ISO27001 certified
Atato custody has officially acquired ISO27001, a global standard for information security management. Having this certification is a testament of our commitment to protecting our customers and their valuable assets. If you’ve missed our announcement, you can check it out here.
OKXChain integration
The Cosmo-built EVM-compatible chain OKC is now supported by atato custody. Users of OKC can now add the chain and its native token to their atato workspace. They will also be able to receive personalized onboarding to atato and six months free.
Read more about the announcement here and redeem your promotion here.
