The Block: Kraken received 50% more regulatory inquiries last year; says compliance costs are increasing

Cryptocurrency exchange Kraken received almost 50% more law enforcement inquiries from global regulators in the last year as compared to 2018.

Sharing an infographic from its “2019 Transparency Report” on Twitter, Kraken said Monday that it received a total of 710 requests in 2019 compared to 475 in 2018, with the majority (432) coming from U.S. agencies.

“Team America still ahead with 61% of total requests, down from 66% last year. Other geos gaining fast. Trend is obvious. Costs are increasing, even in a relatively flat market,” said the exchange. Source: Kraken/ The Block

Breaking down the U.S. numbers, the agency making the highest number of inquiries at California-based Kraken was the Federal Bureau of Investigation (FBI) with 116 requests. That was followed by the Drug Enforcement Administration (DEA) with 73 and Homeland Security Investigations (HSI) - the Immigration and Customs Enforcement (ICE) with 65. The Securities and Exchange Commission (SEC) made 20 requests.

Last year, Kraken said “many businesses choose to block US users” because the cost of handling government subpoenas is fast becoming a “barrier to entry” in the country.