Coinbase Reports Surge in Law Enforcement Requests, with ...

2023

Coinbase Reports Surge in Law Enforcement Requests, with the U.S. Leading the Pack

Coinbase, a prominent cryptocurrency exchange, has disclosed a notable uptick in requests from law enforcement and government agencies, marking a 6% increase compared to the previous year, as indicated in the exchange’s annual transparency report.

This surge in requests was accompanied by a significant rise in the number of jurisdictions seeking information, which soared by 19.

Among the countries contributing to this surge, the United States, Germany, the United Kingdom, and Spain collectively accounted for a substantial 73% of the 13,079 agency requests directed towards Coinbase during the period spanning Q4 2022 to Q3 2023.

The United States stood out with a staggering 5,686 requests, primarily stemming from criminal enforcement agencies, reflecting a rise from the previous year’s 5,304 requests.

Germany ranked second with 1,906 requests, swapping places with the UK, which saw a modest decline to 1,401 requests. Spain secured the fourth position with 732 requests.

In contrast, Australia experienced a remarkable 262% surge in requests sent to Coinbase compared to the previous year, placing it sixth on the list with 453 requests.

Meanwhile, Ukraine’s requests more than tripled, and Portugal’s requests more than doubled, though they did not breach the top 15.

The transparency report covered the final quarter of 2022 and the first three quarters of 2023, encompassing various types of requests such as subpoenas, court orders, search warrants, and other formal legal processes.

Coinbase complied with these requests, offering customer information like names, recent login/logout IP addresses, and payment details, although it occasionally sought clarification from the requesting authorities to ensure compliance with financial regulations and other applicable laws.

Coinbase highlighted in a September blog post that 83% of “G20 members and major financial hubs” have enacted cryptocurrency regulations, including the European Union’s Markets in Crypto-Assets (MiCA) regulation.

This global regulatory landscape has prompted enforcement agencies worldwide to intensify efforts to combat crypto-related crimes by strengthening their investigative units to track potentially illicit crypto transactions.

It’s worth noting that Coinbase faced legal action in June, with the U.S. Securities and Exchange Commission alleging the sale of unregistered securities.

The exchange contested the SEC’s authority in the case through a court filing in October.

Coinbase, operating in over 100 countries, announced its expansion plans in September, targeting the European Union, United Kingdom, Canada, Brazil, Singapore, and Australia, where clear cryptocurrency rules are being established.