Crypto News Bulletin from bitcoinmagazine

Friday March 8, 2019 8:53 PM
2 weeks 1 day ago

Canadian Federal Tax Agency Targets Bitcoin Investors

The Canada Revenue Agency (CRA) has apparently been specifically targeting bitcoin and crypto investors as part of its broader tax strategy to keep tabs on their cryptocurrency investments, including how they purchase these assets.Forbes reported on this story in early March, detailing some of the tactics of the CRA, which include audits and questionnaires. In addition to subjecting cryptocurrency investors to audits, many of these same users have also been sent “comprehensive questionnaires to fill out regarding their bitcoin-related activity over the past years.” Reportedly, some sixty audits are actively ongoing.These questionnaires have notably included in-depth sections inquiring into various services to obscure a user’s identity or transaction history. Known as mixing services, protocols such as CoinJoin increases a person’s privacy by allowing them to combine their transactions with several other users, putting several layers of obfuscation between a sender and receiver. When transactions are processed using tumblers and mixers like this, it becomes nearly impossible to tell who exactly sent or received what.Audited users were also asked several in-depth questions about their ability to purchase bitcoin and other crypto assets anonymously, directly referencing services such as Changely and ShapeShift. Notably, ShapeShift implemented KYC account registration at the end of 2018, no longer making it an anonymous exchange...