Coinbase has released its annual transparency report for 2022, which includes data that suggests law enforcement agencies around the world have started paying more attention to the cryptosphere. The popular crypto exchange saw a 66 percent increase in inquiries from global law enforcement agencies to 12,320 per year. The US topped Coinbase’s list for seeking the most information about suspicious crypto transactions from the exchange this year. Coinbase received 44 government inquiries from India.
According to the report, while US authorities made 5,304 requests for information from Coinbase, the UK ranked second with 1,744 requests between October 2021 and September 2022.
“coin base currently serves more than 108 million customers worldwide. We regularly receive and respond to requests from law enforcement and government agencies asking for customer account information and financial records in connection with civil, criminal, or other investigative matters. These requests may include subpoenas, court orders, search warrants, or other formal legal process,” the exchange wrote in its transparency report.
Other nations that have contacted Coinbase for details on questionable crypto activity accounted for 57 percent of global inquiries.
Argentina, Brazil, China and Taiwan were among the 21 countries where authorities first approached Coinbase in 2022
“Six countries have increased requests from law enforcement and government agencies by over 100 percent: Spain (+940 percent), Belgium (+400 percent), Italy (+281 percent), Netherlands (+163 percent), Austria (+141 Percent). ) and Ireland (+118 percent). Coinbase has a trained team of attorneys, analysts and other experts who individually review and evaluate each government and law enforcement request to assess its legal sufficiency and determine an appropriate response,” the report continued.
For whatever it’s worth, crypto investors might be relieved to know that authorities from so many nations are closely monitoring the sector.
Several nations have repeatedly raised concerns about how often crypto assets are misused by criminals laundering illegal funds across borders.
Additionally, crypto-related scams also increased significantly this year. chain analysissaid in a report two months ago that October was the worst month in terms of crypto crimes, with over $718 million (about Rs.5,890 crore) in losses recorded that month.
In view of the increase in these crimes, the US government imposed sanctions on Privacy Mixer Tools like Tornado Cash, used by crypto criminals to deposit their stolen funds into anonymous accounts.
Almost 10 percent of all funds sent from illegal addresses are sent to mixers, a report by Chainalysis had confirmed earlier this year.
To help law enforcement understand the intricacies of the crypto world, crypto players have brought in initiatives tailored to the task.
Binance for example started the Global Law Enforcement Training Program in September, which aims to help law enforcement officers worldwide understand how Web3 technology and blockchain work.
