The United States, the United Kingdom, and Germany account for 90% of the applications. The FBI and the Department of Homeland Security are the most recurring agencies in the United States.
The bitcoin and cryptocurrency exchange, Coinbase, released a report in which it became known that it provided user data to law enforcement or regulatory authorities in at least 34 countries. The exchange office reported that during the first half of 2020, it attended to 1,914 requests for information about its operators.
The US exchange company revealed that 96% of the requests were related to criminal or criminal investigations, while the other 4% were related to inquiries of a civil or administrative nature. The report explained in detail that 90% of requests came from the United States (1,113), the United Kingdom (441), and Germany (176).
“These requests come largely in the form of citations, but they can also include search warrants, court orders, and other formal processes. When these requests are valid, according to financial regulations and other applicable laws, Coinbase must respond,” the exchange highlighted on its website.
Coinbase agrees to help detect and prevent forbidden activities on its platform. He also said that he respects the position of government authorities in finding “bad actors” who could abuse other users or their system.
It is not clear yet what kind of data Coinbase shares with law enforcement authorities, but this information could include: personal data, operations performed, cryptocurrencies used, and amounts traded. The exchange indicated that it has restrictions on disclosing some of the requests, which means that the figures released for the first half are way higher.
The control of bitcoins in the United States
The total applications issued by agencies mark 58% in the United States, which speaks of the control carried out by different government organizations. These include the following: Federal Bureau of Investigation (FBI), the investigative office of the Department of Homeland Security, the Agency for Drug Enforcement and Control (DEA), and state or municipal authorities.
One striking fact is that the most related offices to securities or shares like the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC) do not rely heavily on Coinbase. Between both institutions, they only accounted for 3% of the requests for information.
Just as the United States leads the requests for data from users on Coinbase, only two other countries in the Americas were mentioned in the report. Canada shows three requirements and Brazil two. In the case of Spain, the country counts 12 requests.
Also, Coinbase seems to agree to release this type of data because it is a regulated entity in the United States. The company must comply with guidelines when it comes to investigations related to money laundering or terrorist financing, for example.
By: Jenson Nuñez.
