Through September 30 of this year, Coinbase received 12,320 law enforcement demands, a 66% increase from the prior year.
The bulk of requests, 43%, originated in the United States, followed by the United Kingdom, Germany, and Spain, according to the exchange’s most recent transparency report.
Paul Grewal, chief legal officer of Coinbase, stated in a blog post, “Since last year’s report, these requests have more than quadrupled, which we ascribe to a mix of our own growth and an overall surge in law enforcement and regulatory interest in the crypto business.”
The exchange, which services more than 108 million clients worldwide, often receives and answers requests from law enforcement and other organisations requesting consumer account information and financial data for civil, criminal, or other investigative purposes.
The rise comes months after the Office of Foreign Assets Control of the U.S. Treasury sanctioned Tornado Cash for its usage by a hacking organisation with ties to North Korea. Kraken reached a settlement with OFAC for alleged breaches of the Iranian Transactions and Sanctions Regulations last month.
Grewal said that the vast majority of inquiries, both internationally and in the United States, were from law enforcement agencies relating to criminal enforcement concerns. Such requests may be subpoenas, court orders, search warrants, or other formal legal proceedings.
Grewal added, “We are required to reply to such inquiries provided they comply with financial standards and other relevant laws.”
Also Read: Cardano’s Charles Hoskinson says the Ripple vs. SEC lawsuit might be settled soon