Increased Data Requests: Kraken Transparency Report
Kraken has recently reported a significant surge in data requests from law enforcement and regulatory agencies in 2024. The exchange disclosed that it received a total of 6,826 requests, marking a substantial 38.6% increase from the previous year.
Leading Requests from the US
The United States authorities led the pack with 1,951 requests, making up 28.6% of the total requests received by Kraken. Following closely behind were Germany and the United Kingdom, with over 15% and 10% of the requests, respectively.
Breakdown of US Inquiries
While the US inquiries came from various government levels, a majority originated from law enforcement agencies. The FBI topped the list with 614 requests, while the US Immigration and Customs Enforcement (ICE) submitted 218 requests. Surprisingly, the Securities and Exchange Commission (SEC) accounted for only 1.9% of US agency requests but contributed significantly to regulatory agency inquiries at 37.3%.
Account Information Requests
Kraken reported that these requests primarily sought information on 10,369 accounts, predominantly linked to users from the US, UK, and Germany. Accounts from the US made up 34.5% of the total, followed by the UK at 8.8% and Germany at 8.5%.
Despite the rise in data requests, Kraken complied with just 57% of them. The exchange stressed that it only discloses user data when legally required, ensuring a balance between regulatory compliance and privacy protection.
India Market Reentry
In a separate development, Kraken is reportedly working on reentering the Indian market after facing a ban in 2024 due to non-compliance with India’s Anti-Money Laundering and Counterfinancing of Terrorism (AML-CFT) laws.
According to The Economic Times, Kraken has enlisted 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 crucial role in its reestablishment in the country.
Kraken was one of the nine offshore exchanges, including Binance, blacklisted by India’s Financial Intelligence Unit. However, Binance has since resumed operations in India after complying with local regulations and taxation frameworks.
