Coinbase will be delivering to the United States Internal Revenue Service (IRS) for ~ 13k customers. It’s reasonable to assume that these 13k accounts will include EVERY whale account from the United States. There are some folks who transferred very large amounts of crypto into USD in 2017, untold millions. full user account data According to the : court documents [The U.S. Government] requested nine categories of documents including: complete user profiles, know-your-customer due diligence, documents regarding third-party access, , , correspondence between Coinbase and Coinbase users, account or invoice statements, records of payments, and produced by Coinbase’s AML system. transaction logs records of payments processed exception records The IRS is the U.S. government’s tax division and has broad authority to on U.S. citizens ranging from tax liens, wage garnishment, , property seizure and . If the IRS suspects that a tax return was purposefully untrue, a person “ .” impose penalties bank levy jail time may face a larger penalty for fraud that’s equal to 75 percent of the underpayment While all of this is consistent with failure to pay tax on securities trading and unreported income, the crypto community members are likely not prepared for full compliance — either ideologically or due to unclear tax enforcement policies to date. The Coinbase / IRS move is a huge signal to the community that things are real now — the government is ready to use economic and physical force to enforce new rules. This is particularly important in light of the developing narrative that crypto brings with it: . the Chaos of distributed anonymity, privacy and autonomy vs the Order of regulation and local governmental compliance In response to compliance initiatives like this from Coinbase, we will see more of the following: This is already being heavily proven on exchanges like . The real excitement will come once the various communities agree on protocols to jump networks and provide cross currency trading between peer-to-peer exchange, i.e. BTC / ETH, XRP / BTC, XMR / BTC, ZEC / XMR — then pandora’s box will be ripped open. Peer-to-peer trading via distributed exchanges: EtherDelta It’s best to keep quiet here as some of the heaviest operators in the world already exist in this space. Peer-to-peer trading in person: will explode as a budget line-item for banks and governments. Compliance enforcers and compliance partners will do everything they can to connect the dots on anything that resembles public transaction data. On-chain analysis for goods and services will continue to be a trivial component compared to global money exchange (and/or) laundering. If micro-transactions continue to incur large network/transfer fees, crypto will never be realistic for small daily transactions. Off-chain networks may affect this, but it remains to be seen to what extent. Commercial cryptocurrency exchange pro-autonomy and anti-extradition will continue to attract interest of high net worth individuals. Countries that are pro-privacy, Check out Tokenspread.com . Follow me on Twitter . Find me on LinkedIn .

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Coinbase cooperation with IRS will cause more peer-to-peer trading, darker crypto web

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Coinbase cooperation with IRS will cause more peer-to-peer trading, darker crypto web

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