Coinbase is tracking a 6% increase in data requests from law enforcement, government agencies

Crypto exchange Coinbase says it has registered a 6% increase in calls from law enforcement and government agencies compared to 2022, according to the exchange's annual transparency report.

Four countries – the United States, Germany, the United Kingdom and Spain – comprised three-quarters (73%) of the 13,079 agencies that requested data from Coinbase between Q4 2022 and Q3 2023.

The United States submitted 5,686 requests to Coinbase, compared to 5,304 last year, with 90.4% from law enforcement agencies. This number dwarfed Germany's 1,906 requests, which ranked second. Germany traded places with the UK compared to last year, with the country seeing a year-on-year drop in inquiries to 1,401. This still surpasses fourth place Spain's tally of 732.

Meanwhile, Australia sent 262% more inquiries to Coinbase compared to last year, placing it in sixth place with 453.

The report covers the last quarter of 2022 and the first three of 2023. The requests that Coinbase considers include subpoenas, court orders, search warrants and other formal legal processes. Coinbase has provided customer information such as name, recent login/logout IP address and payment information in response to requests, but may sometimes push back:

“Our duty is to respond to these requests if they work in accordance with financial regulations and other relevant laws. […] In some cases, we may ask a government or law enforcement agency to limit their requests.

Coinbase reported in a blog post in September that 83% of “G20 members and major financial centers” have crypto regulations in place or have enacted laws against crypto. These regulations include the EU Markets in Crypto-Assets (MiCA) regulation passed in April and other initiatives.

Meanwhile, law enforcement agencies around the world are turning up the heat on crypto-related crimes, with many beefing up their police units to search for potentially illegal crypto transactions.

Related: Coinbase Clearly Warns Customers About CFTC's Bybit Inquiry

Coinbase itself was the subject of an enforcement action by the US Securities and Exchange Commission in June of this year, accusing it of selling unregistered securities. In October, he challenged the SEC's jurisdiction in a court case.

Coinbase is proud to present our fifth annual Transparency Report. By openly sharing this information in response to government data requests, we demonstrate our commitment to earning the trust of our customers, partners and the communities we serve. 1/3 https://t.co/xjntkVPIqd

— paulgrewal.eth (@iampaulgrewal) November 30, 2023

Coinbase is active in over 100 countries. In September, it announced plans to focus on expansion in the European Union, the United Kingdom, Canada, Brazil, Singapore and Australia. Those rulings “are establishing clear rules,” the exchange said.

Magazine: Can you trust crypto exchanges after the FTX collapse?