US-based crypto exchange Coinbase has experienced a significant increase in the number of customer information requests from government and law enforcement entities over the past three years.
In its latest transparency report, Coinbase reveals that it received 13,079 requests between October 2022 and September 2023, a 6% rise compared to the previous year.
This figure also represents a staggering 209% surge from the 4,227 requests made between July and December 2020.
About 57% of the requests originated from outside the US, with countries like Armenia, Cameroon, Costa Rica, Colombia, Moldova, Côte d’Ivoire, New Caledonia, Pakistan, and Sri Lanka making their first-time submissions.
The US accounted for the highest number of law enforcement and agency requests with 5,686, followed by Germany with 1,908.
Notably, authorities in Australia, Portugal, and France also saw substantial increases in their request volumes.
Coinbase emphasizes its commitment to finding a balance between protecting customer privacy and complying with legal obligations. The exchange carefully reviews each request and aims to provide tailored responses while objecting to legally insufficient or overly broad demands.
Hot Take: Coinbase Experiences Surge in Information Requests
Coinbase’s transparency report reveals a sharp increase in customer information requests from government agencies and law enforcement since 2020. This surge highlights the growing interest of authorities worldwide in obtaining cryptocurrency-related data. While Coinbase strives to protect customer privacy, it acknowledges its responsibility to comply with legal requirements. The exchange’s careful review process ensures that requests are evaluated for their legal sufficiency. Additionally, Coinbase seeks to narrow overly broad or vague demands while objecting to producing information when necessary. As cryptocurrency continues to gain mainstream attention, exchanges like Coinbase face the challenge of balancing user privacy and regulatory compliance.
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