Bitcoin loses 20% amid reports of U.S. courts ordering Coinbase to disclose 14000 transactions, which are above $20000, to IRS.
A software tool helps the IRS identify people who hide their wealth, making some bitcoin owners uneasy as they lose their anonymity.
The New York Department of Financial Services approved the virtual currency and money transmitter license for Coinbase after a thorough review of its applications.
According to Jeffrey Berns, more than a million Americans are subject to the summons granted to the IRS.
A Coinbase, Inc. customer filed a motion late Tuesday in federal court seeking to block the Internal Revenue Service from accessing personal and transactional information of individuals who used the Coinbase Bitcoin trading and storage platform between 2013-2015.
The Internal Revenue Services sent Coinbase a summons asking for information on all users basing on three isolated cases when people used bitcoin to evade taxes.