Crypto Crackdown: Kraken's 2024 Transparency Report Reveals 38.6% Surge in Data Requests

Cryptocurrency exchange Kraken has published its latest transparency report, revealing a significant increase in data requests from law enforcement and regulatory agencies in 2024. The number of requests rose by 38.6% year-over-year, totaling 6,826 inquiries. Notably, US agencies accounted for nearly 30% of all requests, with the Federal Bureau of Investigation (FBI) leading the charge with 614 requests.

The report also highlights the growing influence of regulatory bodies, with the US Securities and Exchange Commission (SEC) making up 1.9% of total US agency requests but responsible for 37.3% of all regulatory requests worldwide. This indicates an increased focus on cryptocurrency platforms by regulatory authorities.

Globally, data was provided in response to 57% of the 6,826 total requests. The majority of these targeted accounts based in the US (34.5%), followed by the UK (8.8%) and Germany (8.5%). Requests from France, Spain, and Australia also contributed significantly to the overall volume.

In contrast to Kraken's findings, Coinbase, another leading crypto exchange, reported a decline in data requests in its December transparency report. Coinbase received 10,707 requests in 2024, marking an 18% decrease from 2023. Despite the overall drop, US law enforcement remained the dominant requester, accounting for 81% of all requests received by the exchange.

Regional trends in data requests varied significantly. Germany, historically one of the top sources of data requests, saw a significant drop from 1,906 in 2023 to 1,269 in 2024. Meanwhile, Singapore experienced a sharp surge, with requests increasing by 221%, rising from 34 in 2023 to 109 in 2024. The spike in Singaporean requests suggests heightened interest from authorities in the region.

Kraken's latest report underscores the growing scrutiny from law enforcement and regulatory agencies worldwide. As cryptocurrency adoption continues to expand, exchanges are likely to face increasing compliance demands, reflecting the evolving regulatory landscape of digital assets.