IRS seeks to force Coinbase disclosure of Bitcoin trades

Discussion in 'privacy technology' started by quietman, Nov 21, 2016.

  1. quietman

    quietman Registered Member

    Joined:
    Dec 27, 2014
    Posts:
    511
    Location:
    Earth .... occasionally
    From the news section of Bleeping Computer a few days ago .

    This relates to a motion before the US Federal Court of Northern California to force Coinbase to disclose the personal details of all US users
    that have conducted Bitcoin trades between January 1, 2013, and December 31, 2015.

    Granted , it is in a specific jurisdiction , it only directly relates to Bitcoin trades by US citizens , and in a given time-frame .
    But it is an indication of the way the wind is blowing , and I find it surprising that it has attracted so little attention.
    Perhaps Bitcoin has out-lived it's usefulness and should be put to sleep , in a humane fashion .

    I doubt that this scenario could occur if zcash became the de facto crypto-currency .
     
    Last edited: Nov 21, 2016
  2. Palancar

    Palancar Registered Member

    Joined:
    Oct 26, 2011
    Posts:
    1,867
    I don't think you can fault the crypto currency. There are many "sage users" that keep BTC activities completely within onion in all directions. Eloquent mixers and PayShield for anonymous payments, etc.... If a Gov decides to make it illegal to sell volumes of BTC (or any Crypto) without reporting your gains/losses you are faced with a decision. No different with zcash as you mentioned. Anonymity can be achieved by a competent user, but that is not really the issue.

    Generally folks would like to do what they perceive as "the right thing to do". Then Big Brother comes along and penalizes you for it.
     
  3. hawki

    hawki Registered Member

    Joined:
    Dec 17, 2008
    Posts:
    3,209
    Location:
    DC Metro Area
  4. Palancar

    Palancar Registered Member

    Joined:
    Oct 26, 2011
    Posts:
    1,867
    You caught me, darn. LOL!
     
  5. mirimir

    mirimir Registered Member

    Joined:
    Oct 1, 2011
    Posts:
    6,875
    Well, staying anonymous while trading cryptocurrencies is quite doable. And, as long as you don't keep substantial balances in online wallets, you'll be quite secure. The problem comes from moving anonymously to and from fiat. For small amounts, you can use gift cards, cash through mail, meatspace exchanges, and so on. But for substantial amounts, even if you can manage the transfer anonymously, you're left spending a lot more that you apparently earn. You can declare it, of course. But it may be confiscated if you can't show how you earned it. For huge amounts, you can move it to relatively laid back retirement spots. But that gets expensive. Over my head, that's for sure ;)
     
  6. Minimalist

    Minimalist Registered Member

    Joined:
    Jan 6, 2014
    Posts:
    7,557
    Location:
    Slovenia
    http://securityaffairs.co/wordpress/66189/breaking-news/coinbase-irs-tax-evasion.html
     
  7. mirimir

    mirimir Registered Member

    Joined:
    Oct 1, 2011
    Posts:
    6,875
    That's no surprise.
     
  8. RockLobster

    RockLobster Registered Member

    Joined:
    Nov 8, 2007
    Posts:
    1,089
    Probably the thing to do is become a corporation.
     
  9. mirimir

    mirimir Registered Member

    Joined:
    Oct 1, 2011
    Posts:
    6,875
    Well, there are law firms that specialize in hiding assets. But I'm guessing that you need at least a few $100K before it becomes worthwhile.

    At current Bitcoin prices, I don't see any reason not to just declare and pay tax. I mean, after you've made 1000% over basis cost, paying taxes on that isn't such a big deal.
     
  10. Palancar

    Palancar Registered Member

    Joined:
    Oct 26, 2011
    Posts:
    1,867
    I am glad I never sold there. I just left localbitcoins and I noticed the average BTC price for buyers is now over $12,000.00 with a cash deposit transaction. That means your $100K idea is just over 8 coins. Amazing run over the years.
     
  11. mirimir

    mirimir Registered Member

    Joined:
    Oct 1, 2011
    Posts:
    6,875
    Yeah, and price is still increasing faster than the long-term exponential rate. And now this huge mass of institutional money can play. So we could be looking at $100K within months. Or ~$0, if one of the hard forks manages a takeover. If it's BCH, I won't care. Because I have wallet backups from just after the fork, so I still own BCH from the BTC that I've sold since then :D