It was on November 9 that Coinbase made their appearance in the federal courts as they continued with their attempt to protect the privacy rights of their customers. It was this time last year that the IRS decided to start proceedings against them in order to get access to Coinbase’s records for their U.S. customers between the years of 2013 and 2015.
While there was never any allegation of wrongdoing alleged at Coinbase, the federal government continued to pursue this issue.
In this time period, Coinbase has refused to play ball with the government. They have taken this approach in order to take a stand for both the industry and their customers.
Coinbase has made some progress in this battle after the initial government proceedings wanted access to roughly 500,000 customer account records, this number has been reduced to roughly 14,000.
Coinbase Wins Against The IRS
This was a significant victory for Coinbase, but it didn’t stop the IRS from continuing court proceedings to get access to these records. It is still being argued that this summons is invasive to the customer’s privacy and is completely unjustified.
Coinbase has gotten a lot of support to date from others in the industry and they are committed to seeing this fight out until the end.
They are quick to point out that they hold no grudge against the government and they hope that in the future they can work alongside the IRS in order to develop a tax reporting method that is reasonable for both consumers and providers of virtual currency services.
This is a case that should be watched closely for anybody with links to the industry, as the result will set a precedent for privacy in the world of virtual currencies.