Canada Revenue Agency Asks Coinsquare To Submit User Data For Review
Canada Revenue Agency has petitioned a federal judge to order Coinsquare, a crypto exchange, to submit its client information since 2013.
As reported by the National Post, a news outlet in Canada, the tax authority wants to review every detail in the crypto exchanges customer ledger starting from 2013. According to the body, the decision was reached to check tax fraud and eliminate an underground economy.
Furthermore, the Canada Revenue Agency says it wants major crypto trading platforms around the country to submit all its customers’ details.
CRA claims rate of crypto crime on the increase across Canada
It was reported in 2018 that the CRA formed a crypto unit that will conduct checks and audits of crypto-related activities in the country. A statement released by the CRA noted that the requested information was essential to their quest to rid the country of fraud and other related illegalities.
It also went further to say that it asked Coinsquare to submit its user data because it wants to ensure that they are obeying the country’s tax laws. Giving his take on the issue, the Canada Revenue Agency spokesperson, Charles Drouin, has noted that the agency expects that crypto platforms kick against the order.
“We know and understand that trading crypto comes with some level of anonymity, and it is hard to measure the number of people that comply with the canadian tax law,” Drouin said.
However, the agency expects that the order will be met with objectivity from crypto exchanges. According to a publication by Journal de Montreal last year, the CRA claimed that the number of crypto-related crimes was on the rise in the country as the CRA dealt with close to 54 criminal cases. According to the news outlet, the CRA claims that most arrested person(s) were using crypto to evade tax payments.
Coinsquare CEO says the exchange is yet to decide on the next step
This clampdown method on crypto-related crimes is not the first across the globe as the CRA’s approach towards Coinsquare mirrors the United States IRS’s approach towards Coinbase a few years ago. Major news outlets reported that the United States Internal Revenue Service charged Coinbase to court over its refusal to remit its capital gains from 2013 to 2015.
In a legal battle that dragged across months, the IRS eventually won the case. With the IRS victory, Coinbase was mandated to submit all the details of every client who own funds of $20,000 and above on the platform.
However, Coinsquare has not yet released an official statement about whether or not it would fight the request as the CEO of the crypto platform told National Post that there is still an internal review on the request.
This is not the first time Coinsqaure will be involved in a scuffle with authorities as the OSC has previously accused the platform of manipulating market data. According to the authorities, Coinsquare made about 840,000 fake trades, which was worth 590,000 Bitcoins. At the end of the scuffle, the exchange platform was eventually asked to pay a fine of $2.2 million.
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