Binance, the world's largest crypto exchange in trade volume, is reportedly being investigated by both the US Department of Justice and the IRS. Ever since its founding in 2017, Binance has been the de-facto castle door towards the world of crypto - that the eyes of justice and fiscal-enforcement are set upon it shouldn't come as a surprise. Incorporated in the Cayman Islands - a well-known offshore paradise for avoidance of taxation - the firm has an operating office in Singapore, and has thus been able to skirt massive amounts of tax (though not unlike many other, more traditional businesses do). The investigation also shouldn't come as a surprise considering how cryptocurrency - for all its technological and economic impact - is now one of the more common currencies in usage for the enablement and support of illegal activities.

According to Chainalysis.inc, a company specializing in scrutinizing the crypto market and its players, Binance was the principal crypto exchange through where funds derived from illegal activities went. According to the company, the amount of money attributed to illegal activities isn't low either; Chainalysis estimated Binance was the gateway of choice for moving upwards of $756 million dollars in illegal activities, a tidy percentage of its 2.8 billion dollar flux in that same year. No formal investigation has been announced yet, but this could be the prelude to a deeper dive onto the company's finances and possible enablement of criminal activity.

Coinbase, one of the world's largest cryptoexchanges - which is also one of those with the most solid footing when it comes to these kind of exchange - has announced via email that it will be disclosing around 13,000 users' data to the IRS. No doubt this is a move by the company to improve its footing even more with state institutions; however, this will certainly reduce consumers' trust in the exchange - at least, for those customers who weren't considering having to pay taxes on their crypto earnings.

What prompted this move by Coinbase? Well, back in November 2016, the IRS, through a San Francisco-based judge, started court proceedings which would see all of Coinbase users' data to be delivered to the services. Coinbase fought over these court proceedings, but ultimately caved in after the IRS's proposal changed from "all users" to a system that's likely based on trading volume. This is why "only" 13,000 users will see their personal data (taxpayer ID, name, birth date, address, and historical transaction records for certain higher-transacting customers during the 2013-2015 period) being delivered to the IRS as part of a major tax evasion investigation (which should surprise no one, really).