In an effort to steer the trade in belief and transparency on our mission to speed up the adoption of cryptocurrency, we’re excited to launch our 2022 Transparency Report.
The 2022 Transparency Report gives a abstract of how we defend our shoppers’ privateness and monetary freedom whereas complying with the authorized requests we commonly obtain from companies across the globe.
From an NFT marketplace to a professional trading interface, Kraken gives quite a lot of crypto services to over 9 million shoppers in 190 completely different international locations. Final 12 months, Kraken acquired information requests from regulation enforcement and authorities companies positioned in over 60 completely different international locations. Whereas these requesting companies have been unfold throughout the federal, state, and native ranges, many of the requests acquired have been from regulation enforcement companies.
Kraken receives all sorts of authorized calls for for data together with subpoenas, summonses, courtroom orders, and different statutory requests. Kraken has carried out strict insurance policies and procedures to guard shopper privateness, that are meticulously adopted earlier than any shopper information is produced. Kraken gives information when we’ve got a authorized obligation to adjust to the demand. You will need to notice that failure to conform when we’ve got a authorized obligation to take action can lead to civil or prison penalties in opposition to Kraken.
Key takeaways
- Kraken acquired a complete of three,705 requests in the course of the reporting interval, a 51% improve over final 12 months.
- 71% of the requests got here from outdoors of the U.S. for a complete of two,624 non-U.S. requests. U.S.-based requests totalled 1,081.
- Many of the regulation enforcement requests got here from the U.S., Germany, Nice Britain, and Spain.
- We noticed 79% of our U.S. requests come from regulation enforcement for a complete of 852 requests from U.S.-based regulation enforcement companies.
Fifty-one % improve within the variety of regulation enforcement and authorities requests in 2022
The variety of requests acquired in 2022 represented a 51% improve from the prior 12 months. This continues the pattern of a steadily rising quantity of requests we’ve got seen over the previous a number of years.
For instance, the 12 months over 12 months share improve from 2019 in comparison with 2022 is over 420%. Regardless of the large improve in requests, Kraken continues to emphasise the safety of our shoppers’ information by means of our adherence to sturdy insurance policies and cautious observance of authorized obligations.
As a way to meet the requests of those companies in an environment friendly {and professional} method, we proceed to increase and strengthen our compliance program. Over the previous 12 months, we expanded our Compliance Crew headcount by 55% as a way to meet the calls for of the worldwide community of companies requesting data from Kraken.
Kraken’s Compliance Crew consists of seasoned AML professionals, attorneys, former regulation enforcement officers, ACAMS licensed analysts, and plenty of different professionals with cryptocurrency associated accreditations. The staff works to make sure Kraken conducts applicable investigations and monitoring for our shoppers and the trade.
U.S.-based companies subject essentially the most requests
As has been the case for the previous a number of years, U.S.-based companies proceed to subject essentially the most requests. U.S. requests (1,081) accounted for roughly 29% of the requests acquired by Kraken. The opposite high requesting international locations in sequential order have been Germany (784), Nice Britain (385), Spain (272), and France (251). These 5 international locations additionally issued essentially the most requests in 2021.
Highest variety of requests issued by the FBI
Of the entire 60+ regulation enforcement and authorities companies making requests, the FBI persistently has issued essentially the most requests for the previous a number of years. They continued this pattern once more in 2022. The FBI requests signify roughly 31% (332) of the U.S. based mostly companies’ requests. The following two main U.S.-based companies have been the DHS-ICE (145) and the DEA (109).
“For 2023, Kraken is reaffirming our dedication to working alongside regulation enforcement and authorities companies as a way to weed out criminals and unhealthy actors on this area. However, we’re equally dedicated to offering the perfect service attainable for our shoppers, as we work to safeguard their funds and privateness.” mentioned David Zacks, Senior Director of Compliance at Kraken. “This years Transparency Report as soon as once more gives a deeper stage of readability into how Kraken executes on our mission to speed up the adoption of cryptocurrencies, whereas additionally defending the monetary freedom of our shoppers throughout our numerous services.”
Even with the numerous improve within the quantity of requests, and regulation enforcement and authorities companies’ elevated scrutiny of the cryptocurrency trade, Kraken will proceed to work diligently to guard our shoppers’ privateness whereas nonetheless responding to the various regulation enforcement and authorities requests we obtain.
These supplies are for basic data functions solely and are usually not funding recommendation or a advice or solicitation to purchase, promote or maintain any cryptoasset or to interact in any particular buying and selling technique. Some crypto merchandise and markets are unregulated, and also you might not be protected by authorities compensation and/or regulatory safety schemes. The unpredictable nature of the cryptoasset markets can result in lack of funds. Tax could also be payable on any return and/or on any improve within the worth of your cryptoassets and you must search impartial recommendation in your taxation place. For extra data, please see our Terms of Service.
