Significant News Coming Out of Goldman Sachs and Coinbase

Significant News Coming Out of Goldman Sachs and Coinbase. It has been a day where a lot of news has come to about how the crypto markets are going to be regulated and the fortunes of many investors have been changed as a result of some of the news that has been released.

Goldman Sachs has come out and said that their association with cryptocurrencies represents a potential business risk.

This is a similar sentiment to what was heard last week by the folks at the Bank of America. Last week they warned that there were both compliance and competitive risks that were associated with the use of the technology.

There was a filing made on the 26th of February which covers the Goldman Sachs annual report for 2017 that talks about how they have fears of being negatively impacted as a result of the work they are doing with clients and companies it’s invested in that are related to the world of blockchain.

They have been an investor in the payment startup called Circle (who have just announced that they have made the acquisition of the crypto exchange known as Poloniex) and they are one of a few major investment banks that have been offering their clients access to the bitcoin futures market.

While there was no definitive connection made, it is widely believed that the higher-ups at the investment bank are not very comfortable with the large levels of volatility that are associated with the crypto markets and have fears that prices could drastically be slashed in the future which would not work out too well for their clients.

What about the news coming out of Coinbase?

It has been announced by Coinbase that 13,000 users are going to have their data sent to the IRS. The email was sent to the customers in question but they are attempting to only share as little information as they possibly can. Having said this, they did not disclose exactly how what details would be shared. It is expected that this information will be sent to the IRS within the next 21 days.

The reason for this move is as a result of a legal battle that has been taking place between the two parties which began back in 2016. This resulted from the IRS looking for data on 500,000 users of Coinbase.

Therefore, there has been a legal battle ongoing since then as Coinbase has tried to do everything they can to stop them having to hand over this data.

One of the supposed benefits of using cryptocurrencies is the anonymous nature of it, but this of course rallies against this principle. One of the big concerns the IRS has is that many people are not disclosing the capital gains they have generated as a result of their crypto trades, meaning that they will be missing out on substantial tax revenue.

Coinbase sees the reduction in the demand of sharing information of 500,000 users down to 13,000 as a small, but significant victory in their battle. It is believed that some of those who are included in this data order include well-known people in the crypto world, such as the author and bitcoin advocate Andreas Antonopoulos.

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