Coinbase, in its fourth transparency report, revealed that there had been 12,320 requests from law enforcement authorities, a 66% increase within the period of Oct. 1, 2021, through Sept. 30, 2022.
Spike in requests
Because Coinbase is a centralized exchange, over 108 million of its users are expected to provide know-your-customer ( KYC) documents. Law enforcement authorities carrying out investigative operations will usually demand the records of some of these users with financial records in connection with civil, criminal and other related crimes.
These requests are primarily made via search warrants, court orders, subpoenas or any other formal legal process. Coinbase, as an exchange, is under the binding obligations of existing regulatory laws and is expected to respond accordingly.
The report shows America currently topped the list with 5,304 requests, followed by UK with 1,744 requests. 80% of the request came from mainly Spain, Germany, UK and the US.
A possible justification for the increased demand for this request could be attributed to the proportional increase in the number of cryptocurrency users, the opportunities therein, and the criminal tendencies of some of its users because about 95% of the request were related to criminal enforcement matters.
Coinbase will preserve client data
The Exchange also revealed that its data-sharing procedure with law enforcement agencies is carried out with utmost regard and protection of the user’s interests.
Every request is, first of all, subjected to scrutiny from its team of trained experts using established procedures to determine the legal sufficiency of the request.
It says a request can be denied and deemed as “legally insufficient” if seen as vague, narrow and overly broad.
Source: https://crypto.news/coinbases-law-enforcement-requests-rose-66-in-2022/