To enhance the transparency in the global crypto ecosystem, Coinbase recently published its transparency report for the first three quarters of 2021. Between 1 January 2021 and 30 September 2021, the digital exchange reported a surge in requests from governments and law enforcement agencies around the world for account information and financial records of customers.
Coinbase highlighted that the company reviewed each request carefully to evaluate its legal sufficiency. In total, Coinbase received 5,562 such requests during the first three quarters of 2021. Approximately 51% of the overall requests came from outside the US. The United Kingdom, Germany and the US accounted for almost 84% of the requests.
“We regularly receive and respond to requests from law enforcement and government agencies seeking customer account information and financial records in connection with civil, criminal or other investigative matters. These requests can include subpoenas, court orders, search warrants or other forms of the formal legal process. We have an obligation to respond to such requests if they are valid under financial regulations and other applicable laws,” Paul Grewal, the Chief Legal Officer at Coinbase, mentioned in a post.
In terms of financial results, Coinbase witnessed a sharp growth in 2021. The total number of users increased consistently throughout the year. However, crypto trading volumes saw a decline in the third quarter of 2021.
27% Jump in Requests
According to Coinbase, the crypto exchange received requests from Latvia, Greece, India, Turkey, Bosnia, Hungary and Russia for the first time in 2021. “The number of requests we received in the first three quarters of this year represents a ~27% increase from the total number of requests we received in all of 2020,” Coinbase added.
With growing adoption, it is important for crypto firms to comply with the legal requirements of their respective regions. The recent report shows that the global authorities are now tightening the rules around illegal digital transactions.
