Coinbase Notifies Customers of IRS Summons and Adds Support for SegWit

Coinbase has been busy lately with their announcement of developing a method for merchants to implement a payment processing method for them to accept cryptocurrencies as payment in a more smooth and streamlined manner. Furthermore, Coinbase has seeking to improve its customer service operations and have added key personnel to increase the effectiveness of their customer relation operations. To continue in line with increasing it customer relations reputation, it has stepped up efforts to address the concerns of fees, announcing that they will be working on implementing SegWit into their platform. Oh, they’ve also notified more than 10,000 of their customers on the 23rd of February 2018 that they are some of the unlucky recipients of the IRS Summons, where Coinbase must provide the IRS with information regarding these crypto hodlers or traders accounts. The company will be handing over this information over the course of the upcoming weeks.

Coinbase and the IRS

The Coinbase and the IRS saga has been one that has been continuing from last year, where the team at Coinbase had to negotiate with the IRS and comply with the judgment passed.

Coinbase has to provide information for accounts of customers that engaged in with an amount of twenty-thousand dollars in the transaction forms of selling, buying, sending or reception of satoshis or other forms of cryptocurrencies supported by Coinbase. These documents must be provided for these customers in the years ranging from 2013 to 2015. They must provide specific information in regards to these customers, with the information ranging from their names to their, dates of birth and physical addresses.

Coinbase SegWit implementation

Meanwhile, the popular exchange has notified users that they have integrated Segregated Witness for transactions that occur in the pioneer cryptocurrency Bitcoin, according to their company blog that was released on the 23rd of February, 2018.

Their blog starts by stating:

We’re excited to announce support for Bitcoin Segregated Witness (SegWit) transactions on Coinbase. Over the next week, we will be gradually enabling SegWit compatible Bitcoin sends and receives for all customers.”

This means that not all customers will see the implementations reflected in their transactions immediately and should see it completed by the end of the next week.

The team at Coinbase states that they believe that SegWit is important in moving Bitcoin forward.

The Importance of SegWit

SegWit is important because its implementation, (an implementation that many Bitcoin third-party providers like Coinbase have been dragging their feet on providing), would allow for a significant reduction in transaction processing times and fees that take place on the Bitcoin payments network.

This implementation should allow for the reduction of congestion that has been seen across many exchanges supporting Bitcoin trade and transfer transactions. This lack of implementation has disgruntled many customers across many third parties due to the difficulties and lack of convenience that it has caused.

It seems that platforms are waking up and paying attention these issues as the industry progresses and becomes more mature, Coinbase, in addition to Bitfinex, and the most recent update of Bitcoin Core has included improvements related to Segwit.

The exchange has also stated in the past that they will be looking at implementing the lightning network as well which should significantly improve the experience of Bitcoin consumers.

By | 2018-02-27T03:04:56+00:00 February 27th, 2018|News|0 Comments

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