in Link Post

Coinbase: We Will Send Data on 13,000 Users to IRS

Source: ArsTechnica.com

Cyrus Farivar:

After over a year of legal wrangling, Coinbase has now formally notified its customers that it will be complying with a court order and handing over the user data for about 13,000 of its customers to the Internal Revenue Service. The company, which is one of the world’s largest Bitcoin exchanges, sent out an email to the affected users on Friday, February 23.

Interestingly the comments are full of people declaring that this is the death of cryptocurrency. To me it seems more like the opposite. It seems more like “Governments are treating this seriously now.” Of course you have to pay capital gains on your cryptocurrency. You should self report this when you do your tax return. Of course the tax man is going to try and check that you’re actually doing so.

What will be interesting to see is whether you only have to pay if the proceeds are converted back to fiat.