- Kraken reports a 38.6% rise in global law enforcement and regulatory data requests in 2024.
- The U.S. accounted for 28.6% of all data requests, with the FBI issuing the most.
- Kraken provided data for 57% of requests while maintaining a commitment to client privacy.
Leading crypto exchange Kraken has released its 2024 Transparency Report.
It shows a big 38.6% increase in global law enforcement and regulatory data requests compared to 2023. Specifically, the company got 6,826 requests from agencies in 71 countries.
US Agencies Top Data Request List
The United States accounted for 28.6% of all data requests, with 1,951 submissions. The Federal Bureau of Investigation (FBI) was the most active U.S. agency, sending 614 requests.
U.S. agency requests came from federal, state, and local levels, but most were from law enforcement.
Related: FBI Links $308M DMM.com Bitcoin Hack to North Korean Hackers
Subpoenas Most Common Request Method
Notably, the most common request method was via subpoena/summons, with 1,339 instances.
This is followed by consent orders (56), as well as warrants, police requests, and court orders.
Kraken reported that it handed over data for 57% of the requests they received. These requests pertained to 10,369 accounts, with clients primarily located in the U.S. (34.5%), the U.K. (8.8%), and Germany (8.5%).
“Consistent disclosure of compliance information demonstrates our longtime commitment to complying with legal and regulatory requests,” Kraken noted in the report.
Commitment to Privacy Stressed Amid Rising Requests
At the same time, the exchange reiterated its dedication to client privacy. Kraken stated it has strict policies to make sure it follows legal rules while protecting user information. The company’s Compliance Team is made up of experienced professionals. This includes AML experts, attorneys, former law enforcement officers, and ACAMS-certified analysts.
Kraken is still working to improve its compliance program to handle the growing number of law enforcement and regulatory requests efficiently.
Kraken Still Under Regulatory Scrutiny
Even though Kraken complies with law enforcement, it still faces regulatory challenges in the U.S., including an ongoing lawsuit with the SEC.
In January, the exchange scored a major victory when a federal judge agreed with the SEC v. Ripple ruling. The judge decided that crypto assets themselves aren’t securities, but rather how they are sold is what matters.
The SEC initiated its lawsuit against Kraken in November 2023, accusing the exchange of operating as an unregistered broker and clearing agency.
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