IRS Enlists Coinbase in Latest Crypto Tracing Deal
The tax collector has agreed to pay Coinbase up to $237,000 over the next two years for its "Analytics" tracing software.
Jul 16, 2020 at 8:49 p.m. UTCUpdated Aug 19, 2021 at 3:10 a.m. UTC
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The Internal Revenue Service has become the second U.S. government agency to license Coinbase’s cryptocurrency tracing software, Coinbase Analytics.
STORY CONTINUES BELOW
- On Wednesday, the tax agency agreed to pay the cryptocurrency exchange up to $237,405 over the next two years for use of its newcomer blockchain analytics program, as per publicly available records found by the Block.
- The pair have been working toward a deal since at least April. At the time the IRS said Coinbase’s offering had “capabilities that are not currently found in other tools on the market.” Coinbase’s blockchain tracing rivals Chainalysis and Elliptic have both worked with the IRS in the past.
- Coinbase CEO Brian Armstrong has attempted to downplay the significance of his firm’s government ties. On July 11, in response to community pushback, he argued on Twitter that blockchains are traceable whether his firm does the job or not.
- CoinDesk revealed on July 7 that Coinbase closed its first government contract (worth nearly $50,000) with the U.S. Secret Service in May.
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