IRS Seeking Coinbase User Data

Enter Zcash?


Here’s your use case for Zcash right here… equals no user records

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It’s not the BTC → ZEC transaction that the law cares about. It’s the USD <–> BTC and/or the USD <–> ZEC transactions that require the AML/KYC checks.

So ZEC itself won’t help here. Any company doing USD <–> Crypto exchange in the U.S. will need to store enough user data to do AML/KYC.

The big news about this story is that this data request looks like a “general warrant”. It’s not asking for a specific user they think might be trying to dodge taxes. They are asking for all records on all U.S. Coinbase customers, without any evidence of specific wrongdoing. It looks like a fishing expedition.

That’s the big issue here.

Coinbase is pushing back, and hopefully they’ll tell the government to go kick-rocks with their fishing nonsense, and come back when they can be more specific about who they think is tax-dodging.

Coinbase is playing by the rules, but the gov isn’t in this case.


good points! I plead sickness and being under the influence of cold medicine for failing to see to the heart of it

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The Government is always trying to sick it to the little Guy! What about all the big corporate conglomerates that don’t pay a cent of taxes on all the offshore accounts! Corporations make so much money but for some reason don’t pay shit in taxes, now theyre banging on coinbase’s door sticking there hand out bc some people are trying to make a couple extra dollars off bitcoin. Wtf they are asking the wrong people! They need to be asking walmart, bank of america, and the Koch brothers to help pay the United states debt!