Kraken Experiences 39% Increase in Regulatory Inquiries in 2024, Driven by FBI and SEC

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

The report underscores the growing scrutiny of the cryptocurrency sector, with U.S. agencies taking the lead.

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

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

The United States represented the largest portion, submitting 1,951 requests.

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

While the FBI dominated the enforcement aspect, the U.S. Securities and Exchange Commission (SEC), which initiated a lawsuit against Kraken in 2023 for allegedly operating an unregistered exchange, constituted 1.9% of the U.S. requests.

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

The SEC is pursuing Kraken now.
The offense?
Being a cryptocurrency exchange.
This marks the second instance this year – Kraken was previously fined $30 million by the SEC earlier this year.
They are attempting to undermine crypto in the U.S.
A complete farce of a regulator. pic.twitter.com/w49hzx0MuQ

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

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

These requests pertained to information on 10,369 accounts, with the majority of inquiries focusing on clients based in the U.S., the UK, and Germany.

The company highlighted its commitment to privacy protection while fulfilling legal obligations.

“Kraken has stringent policies to ensure compliance with applicable laws and to protect user privacy,” the exchange stated. “We provide data only when legally required.”

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 emphasizes the increased global regulatory interest in cryptocurrency platforms as governments and regulators enhance oversight of the rapidly evolving digital asset market.

The report closely follows Kraken’s annual financial disclosure, which revealed $1.5 billion in revenue for 2024—a remarkable 128% increase from 2023.

Despite the heightened regulatory pressure, the exchange reaffirmed its dedication to balancing regulatory compliance with user privacy.

“Ongoing disclosure of compliance information reflects our longstanding commitment to adhering to legal and regulatory requests in a manner that is consistent with law enforcement and aligns with our principles.”

SEC Achieves Partial Victory in Case Against Kraken

Recently, the SEC secured a partial victory in its legal dispute with Kraken as a federal judge in California dismissed one of the cryptocurrency exchange’s key defenses.

At that time, Judge William Orrick ruled against Kraken’s invocation of the “major questions doctrine,” which asserts 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 Commerce, the operator of Kraken in Australia, for failing to comply with design and distribution obligations.

The Federal Court determined that Bit Commerce had violated the Corporations Act by offering a margin trading product without a target market determination, breaching regulatory requirements since October 2021.

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