Kraken Sees 39% Surge in Regulatory Requests in 2024, Led by FBI and SEC

Cryptocurrency exchange Kraken experienced a significant increase in regulatory and enforcement data requests in 2024, marking a 39% surge compared to the previous year, according to its latest transparency report released on February 19.

The report highlights the growing scrutiny of the crypto industry, with U.S. agencies leading the charge.

Kraken received a total of 6,826 data requests from authorities across 71 countries last year.

FBI Leads U.S. Regulatory Requests with 614 Inquiries to Kraken in 2024

The United States accounted for the largest share, submitting 1,951 requests.

Among U.S. agencies, the Federal Bureau of Investigation (FBI) was the most active, issuing 614 requests—representing 31% of all U.S. inquiries.

While the FBI dominated the enforcement side, the U.S. Securities and Exchange Commission (SEC), which filed a lawsuit against Kraken in 2023 over alleged operation of an unregistered exchange, made up 1.9% of the U.S. requests.

Despite the relatively small number, the SEC accounted for 37% of all regulatory-focused requests in the United States.

The SEC coming after Kraken now.

The crime?

Being a crypto exchange.

This is the 2nd time this year – Kraken was already extorted for $30m in penalties by the SEC earlier this year.

They are trying to kill crypto in the U.S.

Absolute sham of a regulator. pic.twitter.com/w49hzx0MuQ

— RYAN SΞAN ADAMS – rsa.eth 🦄 (@RyanSAdams) November 20, 2023

Kraken disclosed that it provided data in response to 57% of the total requests in 2024.

These requests involved information on 10,369 accounts, with most inquiries targeting clients based in the U.S., the United Kingdom, and Germany.

The company emphasized its adherence to privacy protection while complying with legal obligations.

“Kraken has strict policies to ensure compliance with applicable laws and to safeguard client privacy,” the exchange stated. “We supply data only when legally obligated.”

Beyond the U.S., Germany, the UK, and Australia were among the top countries requesting information, with other notable requesters including Spain, Canada, France, Italy, and the British Virgin Islands.

Kraken’s 2024 transparency report underscores the heightened global regulatory interest in cryptocurrency platforms as governments and regulators ramp up oversight of the rapidly evolving digital asset market.

The report follows closely on the heels of Kraken’s annual financial disclosure, which revealed $1.5 billion in revenue for 2024—an impressive 128% increase from 2023.

Despite the increased regulatory pressure, the exchange reiterated its commitment to balancing regulatory compliance with client privacy.

“Consistent disclosure of compliance information demonstrates our longtime commitment to complying with legal and regulatory requests in a way that is consistent with law enforcement and aligns with our ideals.”

SEC Achieves Partial Victory in Case Against Kraken

Recently, the SEC achieved a partial victory in its legal battle against Kraken as a federal judge in California dismissed one of the crypto exchange’s central defenses.

At the time, Judge William Orrick ruled against Kraken’s use of the “major questions doctrine,” which claims that federal agencies cannot exercise powers not explicitly granted by Congress.

The SEC had filed a motion to strike three of Kraken’s defenses in a lawsuit accusing the exchange of offering unregistered securities.

Notably, the Australian Securities and Investments Commission (ASIC) also won a court case against Bit Trade, the operator of Kraken in Australia, for failing to comply with design and distribution obligations.

The Federal Court ruled that Bit Trade had breached the Corporations Act by offering a margin trading product without a target market determination, violating regulatory requirements since October 2021.