13,000 customers receive email about the IRS from Coinbase

Popular cryptocurrency exchange Coinbase has just emailed 13,000 US customers to tell them they will be forwarding their data to the IRS.

The crypto startup said on Friday that it would provide data on some of its customers to U.S. tax authorities in the coming weeks.

In an email sent out to customers, Coinbase didn’t confirm the exact information it that will send to the IRS.

The company did confirm, however, that it will share “only certain limited categories of information” with the Internal Revenue Service (IRS).

They didn’t elaborate on what the “limited categories” of the data were, though either.

Coinbase said in a notice on their website that it aims to provide the required data to the IRS within the next 21 days.

The company advised its customers to seek legal advice “promptly,” saying:

“If you have concerns about this, we encourage you to seek legal advice from an attorney promptly.”

Lengthy court battle

The move follows a protracted legal battle between Coinbase and the tax agency.

Lengthy court battle

The move follows a protracted legal battle between Coinbase and the tax agency.

The problems began in 2016 when the IRS initially sought data on 1/2 million Coinbase users.

As reported by CoinDesk, an order from the US District Court for the Northern District of California in November stipulated that Coinbase must submit information on its users.

The users in question were those who had seen over $20,000 trading volume between 2013 and 2015.

Coinbase said in the email that the reduced number of users affected was a “partial, but still significant, victory.”

Bitcoin advocate and author Andreas Antonopoulos is reportedly one of those included in the data order.

Some other notable figures in the cryptocurrency industry were also part of the order, according to posts on social media.

It’s not yet clear whether more data will be requested by the IRS.

It seems very unlikely that the tax agency will let the matter lie, however.