Kraken Reports Surge in Data Requests from Regulators in 2024, Led by US Agencies

San Francisco-based cryptocurrency exchange Kraken saw a significant uptick in regulatory and enforcement data requests in 2024, according to its latest transparency report. The report, released on February 19, revealed a 39% increase in such requests, with the vast majority coming from US-based agencies, including the Federal Bureau of Investigation (FBI) and the US Securities and Exchange Commission (SEC).

Data Requests Soar in 2024

In total, Kraken received 6,826 data requests from 71 countries in 2024, marking a substantial rise from the previous year. The United States was by far the largest requester, with 1,951 inquiries, accounting for nearly 29% of the global total. Of these, the FBI issued the most requests, with 614 data queries—approximately 31% of all requests from US agencies.

Notably, while the SEC had previously made headlines in 2023 for suing Kraken over the alleged operation of an unregistered exchange, its requests for data in 2024 accounted for a smaller share—roughly 1.9% of total US agency requests. However, the SEC still made up the largest portion of regulatory data requests in the US, at 37%.

Kraken’s Response and Data Compliance

Kraken revealed that it complied with 57% of the total data requests it received in 2024. This data concerned 10,369 Kraken accounts, with the majority of the requests coming from clients in the US, the UK, and Germany.

“Kraken has strict policies and procedures to comply with laws and regulations, and we are committed to protecting client privacy while supplying data when legally obligated,” the exchange stated in the report. This statement highlights Kraken's ongoing balance between cooperating with regulatory bodies and maintaining its commitment to user privacy.

While the SEC’s data requests made up a smaller percentage, other US regulatory agencies also sought information from Kraken. These included the Commodity Futures Trading Commission (CFTC), the Office of Foreign Assets Control (OFAC), and the State Regulatory Agency.

International Requesters

Beyond the United States, Kraken's transparency report noted that several countries were also significant sources of data requests. Germany, the UK, and Australia were among the top international requesters, along with Spain, Canada, France, Italy, and the British Virgin Islands, rounding out the top 10 countries for data inquiries.

Kraken emphasized its commitment to consistent disclosure and transparency, which it says is crucial for its operations. "Financial freedom, permissionless access to assets, and the acceleration of global crypto adoption—while upholding a vigilant commitment to regulatory compliance and client privacy—remain our guiding principles," the exchange added.

Kraken's Growth Amid Regulatory Scrutiny

Kraken’s increased compliance with data requests comes on the heels of the exchange’s financial success in 2024. The company reported a 128% year-over-year increase in revenue, reaching $1.5 billion for the year. This growth reflects the ongoing demand for crypto services despite the increasing regulatory pressure on the sector.

The surge in data requests highlights the growing scrutiny that cryptocurrency exchanges face globally, particularly from US regulators. As the industry matures, the balance between regulatory compliance and protecting user privacy will continue to be a key challenge for exchanges like Kraken.

Kraken’s transparency report demonstrates its ongoing efforts to navigate these challenges while maintaining its mission of facilitating financial freedom and supporting the global adoption of cryptocurrency.