Crypto exchange Coinbase has disclosed a 6% uptick in information requests from law enforcement and government agencies compared to the previous year, according to the platform’s annual transparency report. The report covers the period between the final quarter of 2022 and the first three quarters of 2023.
Notably, the number of jurisdictions issuing requests surged by 19, with four countries— the United States, Germany, the United Kingdom, and Spain— constituting nearly three-quarters (73%) of the total 13,079 agency requests to Coinbase during this period.
The United States led the pack with 5,686 requests, marking an increase from 5,304 the previous year. A significant portion, 90.4%, of these requests originated from criminal enforcement agencies. Germany ranked second with 1,906 requests, surpassing the United Kingdom, which experienced a slight decline to 1,401 requests compared to the previous year. Spain secured the fourth position with 732 requests.
Australia experienced a remarkable 262% surge in requests to Coinbase, landing it in the sixth position at 453 requests. Ukraine and Portugal also saw substantial increases in requests, though they did not make it to the top 15.
The disclosed information in response to these requests included customer details such as name, recent login/logout IP address, and payment information. However, Coinbase emphasized its commitment to pushing back under certain circumstances, stating, “Our obligation is to respond to these requests if they are valid under financial regulations and other applicable laws. Under certain circumstances, we may ask the government or law enforcement agency to narrow their request.”
Coinbase highlighted in a September blog post that 83% of “G20 members and major financial hubs” have implemented or passed legislation on crypto regulations. This includes the European Union’s Markets in Crypto-Assets (MiCA) regulation, enacted in April.
As enforcement agencies worldwide intensify efforts against crypto-related crime, many have bolstered their police units to trace potentially illicit crypto transactions. Coinbase, operating in over 100 countries, faced enforcement action from the U.S. Securities and Exchange Commission in June, alleging the sale of unregistered securities. Coinbase contested the SEC’s authority in a court filing in October.
In September, Coinbase announced plans to concentrate on expansion in the European Union, United Kingdom, Canada, Brazil, Singapore, and Australia, citing these jurisdictions as enacting clear rules.
