On Sunday, January 7, cryptocurrency exchange Kraken released statistics on how often law enforcement officials badger them for disclosure on various types of information.
The exchange pointed out that most of the requests came from the U.S. regulatory bodies. For 2018, Kraken revealed it had received nearly 475 requests, as compared to 100 requests in 2017.
The exchange reasoned that this was one of the reasons why many businesses choose to block U.S. users.
Peek at our Compliance team's 2018 Transparency Report. You can see why many businesses choose to block US users. Cost of handling subpoenas (regardless of licenses) is quickly becoming a barrier to entry. Inquiries up 3x YoY. pic.twitter.com/YbyLEqhOUf
— Kraken Exchange (@krakenfx) January 5, 2019
One user asked the exchange about how many requests they refuse due to reaching/outside of scope.
“Part of why these are so taxing is that they often require a significant amount of education and back-and-forth. We’ll get requests for “all transactions”, which could be petabytes of data when they actually only need the withdrawals from last week for one guy,” – they answered in Kraken.
Some of the countries that have subpoenaed Kraken for information include United Kingdom, Singapore, Estonia, Denmark, France, among others. The exchange also said there was one request from India too.
In another tweet, the exchange in response to a Twitter user’s query said, “US is about 1/5 of clients but 2/3 of requests. US agencies are much more active and are much less surgical. For many requests, we have no matches. It wouldn’t be surprising to find that the same subpoenas go out to everyone in the hopes that a match will be found.”
As reported last month, Kraken has been preparing for an initial private offering (IPO) through reaching out to high-value clients with the investment opportunity. The exchange has set a minimum investment amount of $100 000 and plans to list shares at a valuation of $4 billion.
This news was provided by Crypto News India, our partnering media source in India.