Coinbase, a cryptocurrency exchange, reported a 6% increase in inquiries from law enforcement and government bodies in comparison to 2022. The number of jurisdictions sending these inquiries rose by 19, as detailed in the exchange’s yearly transparency report.
The bulk of the 13,079 requests for information received by Coinbase between the fourth quarter of 2022 and the third quarter of 2023 came from just four countries: the United States, Germany, the United Kingdom, and Spain, accounting for approximately 73% of all requests.
The United States led with 5,686 requests, a rise from 5,304 the previous year, with 90.4% originating from criminal enforcement agencies. This figure significantly surpassed Germany’s 1,906 requests, which was the second-highest. Germany overtook the U.K. in the number of requests, as the U.K. saw a slight decrease to 1,401 requests. Spain, in fourth place, had 732 requests.
Australia’s requests to Coinbase surged by 262% from the previous year, ranking it sixth with 453 requests. Ukraine and Portugal also saw significant increases in their requests, more than tripling and doubling, respectively, although they did not make the top 15 list. The report spanned from the last quarter of 2022 to the first three quarters of 2023 and included various legal requests such as subpoenas and search warrants. In response, Coinbase often provided customer information like names, login/logout IP addresses, and payment details, but sometimes challenged the breadth of these requests:
“We are obligated to comply with these requests when they are legally valid under financial regulations and other applicable laws. […] In some cases, we may request that the government or law enforcement agency narrow their request.”In a September blog post, Coinbase noted that 83% of “G20 members and major financial hubs” have implemented or passed crypto regulations. These include the European Union’s Markets in Crypto-Assets (MiCA) regulation, enacted in April, among other measures.
Globally, enforcement agencies are intensifying efforts against crypto-related crimes, with many enhancing their units to track potentially illegal crypto transactions. Coinbase itself faced legal action in June of this year when the U.S. Securities and Exchange Commission filed a lawsuit alleging the sale of unregistered securities. Coinbase challenged the SEC’s jurisdiction in an October court filing. Operating in over 100 countries, Coinbase announced in September its plans to expand in the European Union, United Kingdom, Canada, Brazil, Singapore, and Australia, focusing on regions with “clear rules,” according to the exchange.
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