To begin offering services to users and investors in the crypto space, crypto exchanges and related businesses need to undergo regulatory procedures. Even though that is mandatory, some firms have evaded that, but the regulators are not taking it easy.
In a new report, the Canadian Revenue Agency has asked crypto exchange based in Toronto, Coinsquare, to submit all the data belonging to its users. With a recent ruling going in favor of the regulator, the company would subsequently allow them to carry out their checks and identify all the information they wish to identify.
Both entities failed to reach an understanding previously
Reacting to the recent ruling, the crypto exchange has released a statement where it pointed out that it has reached an agreement with the regulator. Notably, both of these entities have been at loggerheads on this issue in the past few months. While the CRA was adamant that they had every right to look into customer activities and details, Coinsquare stood their ground, staying various privacy breach terms.
Even though trading crypto comes with some anonymity, crypto exchanges worldwide have reduced that by asking users to sign up and undergo specific KYC registration and verifications. In its statement, Coinsquare pointed out that it would only allow the regulator to access their customers’ activities up until 2014, as stated by the law.
With this happening in the coming days, the CRA would own about 10% of data belonging to users from Coinsquare. According to the ruling, Coinsquare would only be allowed to release their customers’ details who have carried out transactions worth about 20,000 Canadian dollars starting from 2014 until 2020.
CRA and Coinsquare say it is a good ruling
The tax agency across the country is also set to review about 16,500 details of customers on the Coinsquares platform. Despite the CRA spending more than seven months in court over the ruling, this is the first time that it would be against a crypto exchange. Going by the laws of the tax office in Canada, Coinsquare would submit users’ details on their platform while the CRA would conduct their checks and rule out the people who have complied with the laws while placing those guilty under arrest.
As said above, the crypto exchange initially said that it would not send the details overdue to specific privacy concerns. Even though Coinsquare is still of the opinion that the regulator should not go through its client’s details, it mentioned that the ruling was a win to the country’s crypto sector. Even though the CRA has said that the ruling is a good one on their part, too, they have positioned that they may require the crypto exchange to provide them with more information about individuals who are listed as unnamed persons.