TL;DR
- In 2024, Kraken received 6,826 information requests from government agencies and regulators, a 39% increase compared to the previous year. The FBI was the U.S. agency that made the most requests.
- Kraken provided data in 57% of the cases, maintaining a balance between regulatory compliance and user privacy. Most of the requests came from the U.S., UK, and Germany.
- Despite regulatory pressure, Kraken continues its expansion in Europe, obtaining the MiFID license to offer derivatives and advanced financial services in the EU.
Kraken, one of the leading cryptocurrency exchange platforms, has released its latest transparency report, revealing a significant rise in government data requests. In 2024, the company received 6,826 requests from 71 different countries, marking a 39% increase from 2023. The majority of these requests came from the United States, with 1,951 cases, topped by the FBI, which made 614 requests.
This growth in regulatory data demands reflects the increasing pressure on crypto businesses amidst a stricter legal environment. Despite this, Kraken has reiterated its commitment to user privacy, ensuring it only provides data when there is a clear legal obligation. In this regard, the company complied with 57% of the requests, with the majority of cases involving clients from the U.S., UK, and Germany.
The SEC and its Clash with Kraken
Another key point in the report is the involvement of the U.S. Securities and Exchange Commission (SEC), which accounted for just 1.9% of the U.S. requests. This figure stands out, considering that the SEC has taken an aggressive stance against Kraken, accusing it in 2023 of offering unregistered securities. However, the small amount of SEC requests suggests that the regulatory battle may be more focused on legal disputes than on massive user investigations.
On the other hand, Germany, the UK, and Australia also ranked among the top countries making information requests. Meanwhile, other countries such as Spain, Canada, and France have shown increased interest in crypto regulation, indicating that cryptocurrencies are increasingly on the radar of global authorities.
Kraken’s Expansion and Strength in Europe
Despite regulatory challenges, Kraken has shown impressive growth. In 2024, the platform recorded a 128% increase in its revenue compared to the previous year, strengthening its position in the market. Additionally, the company has expanded into Europe by securing the MiFID license, which allows it to offer advanced financial products across the European Union.
Kraken remains committed to innovation and decentralization, striving to balance regulatory compliance with protecting user privacy. As regulators continue to ramp up scrutiny on the crypto industry, Kraken is positioning itself as a key player in the evolution of the global financial ecosystem.
