Kraken faces 40% surge in law enforcement data requests, eyes India return

Kraken has disclosed a significant increase in data requests from law enforcement and regulatory agencies in 2024.

According to its latest transparency report, the exchange received 6,826 requests, reflecting a 38.6% rise from the previous year.

US lead requests

Authorities in the United States submitted the largest share, 1,951 requests, representing 28.6% of the total.

Germany and the United Kingdom followed, with requests exceeding 15% and 10%, respectively.

While US inquiries spanned multiple government levels, most came from law enforcement agencies. The FBI led with 614 requests, while the US Immigration and Customs Enforcement (ICE) submitted 218.

Notably, the Securities and Exchange Commission (SEC) made up only 1.9% of US agency requests but contributed 37.3% of regulatory agency inquiries.

Kraken revealed that these requests sought information on 10,369 accounts, primarily linked to US, UK, and German users. Accounts from the US comprised 34.5% of the total, with the UK and Germany following at 8.8% and 8.5%, respectively.

Despite the increase in requests, Kraken complied with just 57%. The exchange emphasized that it only provides user data when legally obligated, balancing regulatory compliance with privacy protection.

India re-entrance

In a parallel development, Kraken is reportedly working toward reentering the Indian market after being banned in 2024 for non-compliance with India’s Anti-Money Laundering and Counterfinancing of Terrorism (AML-CFT) laws.

According to The Economic Times, Kraken has appointed Vishesh Khurana, co-founder of Shiprocket and managing partner at Tribe Capital India, as an advisor for its expansion strategy.

The exchange’s co-CEO, Arjun Sethi, is also expected to play a significant role in the company’s reestablishment in the country.

Kraken was among the nine offshore exchanges, including Binance, that India’s Financial Intelligence Unit blacklisted. However, Binance has since resumed operations in the Asian country after registering with the FIU and complying with the local taxation frameworks.

Mentioned in this article