Kraken, a popular cryptocurrency exchange, has recently reported a significant increase in data requests from law enforcement and regulatory agencies in 2024. According to their latest transparency report, the exchange received a total of 6,826 requests, showing a 38.6% increase from the previous year.
The majority of these requests came from authorities in the United States, accounting for 1,951 requests, which is approximately 28.6% of the total. Following the US, Germany and the United Kingdom also submitted a significant number of requests, with shares exceeding 15% and 10% respectively.
The data revealed that US inquiries were spread across various government levels, with most requests coming from law enforcement agencies. The FBI led with 614 requests, while the US Immigration and Customs Enforcement (ICE) submitted 218. Interestingly, the Securities and Exchange Commission (SEC) made up only 1.9% of US agency requests but contributed to 37.3% of regulatory agency inquiries.
Kraken disclosed that these requests were related to information on 10,369 accounts, predominantly linked to users from the US, UK, and Germany. Accounts from the US made up 34.5% of the total, followed by the UK at 8.8% and Germany at 8.5%.
Despite the surge in requests, Kraken stated that they only complied with 57% of them. The exchange emphasized that they only provide user data when legally obligated, striking a balance between regulatory compliance and privacy protection.
In a separate development, Kraken is reportedly working towards re-entering the Indian market after being banned in 2024 for non-compliance with India’s Anti-Money Laundering and Counter Financing of Terrorism (AML-CFT) laws. According to The Economic Times, Vishesh Khurana, co-founder of Shiprocket and managing partner at Tribe Capital India, has been appointed as an advisor for Kraken’s expansion strategy in India. Additionally, the exchange’s co-CEO, Arjun Sethi, is expected to play a key role in the company’s reestablishment in the country.
Kraken was among the nine offshore exchanges blacklisted by India’s Financial Intelligence Unit, including Binance. However, Binance has since resumed operations in India after registering with the FIU and complying with local taxation frameworks.
Overall, Kraken’s transparency report sheds light on the increasing demands for user data from law enforcement and regulatory agencies, as well as the exchange’s commitment to safeguarding user privacy while complying with legal obligations.