Kraken, the largest U.S.-based crypto exchange by volume, released a Compliance team’s 2018 Transparency Report, in which it indicates that the exchange has received 475 law enforcement requests in 2018, which is a nearly 200% increase from 2017’s 160 requests.
About 66% of these requests came from the law enforcement agencies in the U.S. while Kraken claims that only 20% of userbase is based in the U.S. Kraken said that “US agencies are much more active and are much less surgical” and that there are no matches for many requests. It is unclear, however, what share of revenue is coming from the U.S. customers. Kraken added that “it wouldn’t be surprising to find that the same subpoenas go out to everyone in the hopes that a match will be found.” The U.K., Germany and France combined for another 24% of the requests.
The most requests from the U.S. law enforcement agencies came from Homeland Security Investigations (HSI) followed by the Federal Bureau of Investigation (FBI) and Drug Enforcement Administration (DEA). Kraken said that the “cost of handling subpoenas (regardless of licenses) is quickly becoming a barrier to entry.”
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Kraken received nearly 3 times more law enforcement requests in 2018 than in 2017 written by Larry Cermak @ https://www.theblockcrypto.com/tiny/kraken-received-nearly-3-times-more-law-enforcement-requests-in-2018-than-in-2017/ January 7, 2019 Larry Cermak