(Kitco News) – Global regulators continue to make up for years of inaction in regards to blockchain technology as the global crypto crackdown of 2022 continues to gain steam with new laws and enforcement actions coming every week.
On Monday, an order entered by a federal district in California cleared the U.S. Internal Revenue Service (IRS) to serve a John Doe summons to the crypto prime dealer SFOX.
The order will allow the IRS to obtain information regarding taxpayers in the United States who conducted at least $20,000 in crypto transactions between 2016 and 2021 using SFOX.
The main focus of this latest action is to “obtain information about possible violations of internal revenue laws by individuals whose identities are unknown,” according to the order, which basically means that the move is designed to ensure that U.S. citizens pay the proper amount of taxes for their cryptocurrency dealings.
“The information sought by the summons approved today will help to ensure that cryptocurrency owners are following the tax laws,” Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division said.
The order does not allege any wrongdoing by SFOX in regards to its digital currency business and is mainly focused on obtaining information related to active users of the platform whose identities are unknown.
2017 ICOs are not out of the hot seat
Evidence that U.S. regulators continue to deal with a backlog of enforcement actions could be found in Tuesday’s announcement that the Securities and Exchange Commission has charged Dragonchain (DRGN) with welling $16.5 million in unregistered securities during its initial coin offering (ICO) in 2017.
According to the suit, the SEC is targeting Dragonchain founder and CEO Joe Roets along…
