The IRS has been chasing, demanding, and harassing Coinbase for its users’ transactional information for over a year. Coinbase has been receiving a John Doe summons dating back to December 8th, 2016, with further demands throughout 2017 that transactional data from 2013-2015 should be handed over.
Coinbase fought back and won a partial victory, reducing the amount of data demanded for submission – one battle was won, but the war was lost.
In November 2017, the San Francisco court ruled that Coinbase MUST hand over data of users who completed transactions of more than $20,000 through their accounts from 2013–2015!
It’s estimated that only 800 to 900 taxpayers reported gains related to bitcoin in each of the relevant years and that more than 14,000 Coinbase users have either bought, sold, sent, or received at least $20,000 worth of bitcoin in a given year, which suggests that many Coinbase users may not be reporting their bitcoin gains.
On February 23rd, 2018, Coinbase notified a group of approximately 13,000 customers concerning a summons from the IRS regarding their Coinbase accounts.
The court ordered Coinbase to provide taxpayer ID, name, birth date, address, and historical transaction records for certain higher-transacting customers during the 2013-2015 period.
Pure Blockchain Wealth sees this as a serious step, which will set precedence for other countries to pursue the same protocol with their exchanges. As Coinbase is one of the leading exchanges in the world for purchasing Bitcoin, Litecoin, and Ethereum, other regulatory authorities will attempt to demand information about their citizens – it makes perfect sense.
Coinbase will not cease to exist, but will take additional steps, starting now, to protect and make its customers aware of potential liabilities they could face in the years following.
Privacy Coins: Totally Anonymous
Coinbase is now under the eye of the law, and Bitcoin transactions are being traced to the addresses of the users they were sent to and from – this is a nightmare, but Pure Blockchain Wealth predicted that regulators and authorities would target exchanges, as the weak link in the cryptocurrency supply chain.
There are a select few anonymous cryptocurrencies that use encrypted transactions to keep all activity on the network fully private and decentralized, though.
The exchange used to purchase them will still have the transaction history and know all data about the activity and dates, but when this is done peer to peer or using one of the decentralized exchanges, which are now in the works, then no government can turn you into a target.
Zcash – This cryptocurrency uses encrypted transactions to give the user full transparency on the network. This is achieved by using zk-SNARKS, which allows the encrypted transaction to be accepted on the network by miners.
Zcash is the result of the Zerocoin protocol, which is what Zcoin originally used. Zcash’s protocol is the 2.0 to Zcoin’s preliminary technology.
Where to buy:
Where to store:
• Official Zcash Wallet
• Alternate wallets: Jaxx, Coinomi, and many others
Monero – The primary currency used on the dark markets.
Monero is a favorite of Pure Blockchain Wealth, and we began covering it at $27 – today it is trading above $270. We love getting your emails about the massive gains you’ve made, as a result of our early alert.
It is different to Zcash and other Zerocoin protocol-based cryptocurrencies, as it uses ring signatures and stealth addresses.
This works by creating one-time addresses for each transaction. The ring signature is a type of encrypted digital signature. A member of a group that each possesses the keys can anonymously verify a transaction without it ever being traced back to them.
Where to buy:
Where to store
• My Monero and Monerujo
One of the safest ways to get involved with the cryptocurrency market without actually owning any of the coins is by investing in blockchain-focused publicly traded companies.
Our No.1 pick, DMG Blockchain Solutions (TSX-V: DMGI & US: DMGGF) is already up double-digits since we covered it on the day it started trading at CAD$0.80 – we were the 1st newsletter on the planet to learn about this opportunity and publish research on it.
Since our initial alert, the company has had two important updates:
1. They are acquiring Blockseer, which is one of the leading blockchain application developers on the planet. They’re based in Palo Alto, and the founder is Danny Yang, who I consider to be one of the top minds in the crypto economy.
2. DMG Blockchain (TSX-V: DMGI & US: DMGGF) also landed a major new client for their BTC Mining as a Service operations. In fact, as it stands, the company is on track, judging by our estimations, to triple their mining capabilities in 2018!
Unlike the countless ICO’s out there, who can only dream about someday turning a profit, DMG will begin to report earnings soon and investors will begin to pay attention, but these are the early days, and we have a window of opportunity to position when the company isn’t even a month old!
That’s rare. Research this company now!