The exchange tweeted that the US government is responsible for two-thirds of the increase.
US-based cryptocurrency Exchange Kraken announced that the number of subpoenas it has received from various government organizations around the world nearly tripled from 2017 to 2018 year-over-year in a tweet on January 5.
More precisely, Kraken claims that it received 475 government inquiries in 2018 compared to just 160 in 2017. In 2016, there were only 71 such inquiries.
Peek at our Compliance team's 2018 Transparency Report. You can see why many businesses choose to block US users. Cost of handling subpoenas (regardless of licenses) is quickly becoming a barrier to entry. Inquiries up 3x YoY. pic.twitter.com/YbyLEqhOUf
Kraken also explicitly stated that the vast majority of these inquires--315 of them--had come from United States government organizations. “You can see why many businesses choose to block US users,” the tweet stated, adding that the “cost of handling subpoenas (regardless of licenses) is quickly becoming a barrier to entry.”
Kraken also stated that while the US government is responsible for two-thirds of the inquiries it has to handle, US-based customers make up just one-fifth of its user base. “US agencies are much more active and are much less surgical” in comparison to the agencies of other governments, Kraken explained. “For many requests, we have no matches. It wouldn't be surprising to find that the same subpoenas go out to everyone in the hopes that a match will be found.”
According to Kraken, the trouble with the “less surgical” nature of the US government’s requests is that handling them “often [requires] a significant amount of education and back-and-forth.”
“We'll get requests for ‘all transactions,’ which could be petabytes of data when they actually only need the withdrawals from last week for one guy,” the exchange tweeted.
Kraken Has Clapped Back At US Gov. Before
This isn’t the only time that Kraken has sounded off over what it seems to feel are unfair inquiries. In April of 2018, the exchange publicly announced that it would not be answering requests for an inquiry from New York Attorney General Eric Schneiderman, who (at the time) sent the same letter of inquiry to 13 separate cryptocurrency exchanges. (The other 12 exchanges reportedly welcomed the inquiry.)
In a blog post, Kraken CEO Jesse Powell wrote that Kraken would not be responding due to the short deadline outlined in the request as well as the fact that Kraken no longer operated in New York at the time the inquiry was made.
Somebody has to say what everybody's actually thinking about the NYAG's inquiry. The placative kowtowing toward this kind of abuse sends the message that it's ok. It's not ok. It's insulting. https://t.co/sta9VuXPK1pic.twitter.com/4Jg66bia1I
In spite of Kraken’s controversial relationship with certain aspects of the US government, the company must be doing something right. In December, the exchange announced that its valuation had hit $4 billion and that it was seeking a small number of fundraising clients to purchase shares at a minimum of $100,000.
An email sent to investors at the time of the announcement described the fundraising round as the exchange’s effort to “[present] our most valued clients with the opportunity to become equity holders in the company.”
“We’re profitable and sitting on significant reserves so fundraising is not a necessity, however, further aligning interests with our top clients while building a war chest for acquisitions in the bear market presents a win-win opportunity,” the email said.
US-based cryptocurrency Exchange Kraken announced that the number of subpoenas it has received from various government organizations around the world nearly tripled from 2017 to 2018 year-over-year in a tweet on January 5.
More precisely, Kraken claims that it received 475 government inquiries in 2018 compared to just 160 in 2017. In 2016, there were only 71 such inquiries.
Peek at our Compliance team's 2018 Transparency Report. You can see why many businesses choose to block US users. Cost of handling subpoenas (regardless of licenses) is quickly becoming a barrier to entry. Inquiries up 3x YoY. pic.twitter.com/YbyLEqhOUf
Kraken also explicitly stated that the vast majority of these inquires--315 of them--had come from United States government organizations. “You can see why many businesses choose to block US users,” the tweet stated, adding that the “cost of handling subpoenas (regardless of licenses) is quickly becoming a barrier to entry.”
Kraken also stated that while the US government is responsible for two-thirds of the inquiries it has to handle, US-based customers make up just one-fifth of its user base. “US agencies are much more active and are much less surgical” in comparison to the agencies of other governments, Kraken explained. “For many requests, we have no matches. It wouldn't be surprising to find that the same subpoenas go out to everyone in the hopes that a match will be found.”
According to Kraken, the trouble with the “less surgical” nature of the US government’s requests is that handling them “often [requires] a significant amount of education and back-and-forth.”
“We'll get requests for ‘all transactions,’ which could be petabytes of data when they actually only need the withdrawals from last week for one guy,” the exchange tweeted.
Kraken Has Clapped Back At US Gov. Before
This isn’t the only time that Kraken has sounded off over what it seems to feel are unfair inquiries. In April of 2018, the exchange publicly announced that it would not be answering requests for an inquiry from New York Attorney General Eric Schneiderman, who (at the time) sent the same letter of inquiry to 13 separate cryptocurrency exchanges. (The other 12 exchanges reportedly welcomed the inquiry.)
In a blog post, Kraken CEO Jesse Powell wrote that Kraken would not be responding due to the short deadline outlined in the request as well as the fact that Kraken no longer operated in New York at the time the inquiry was made.
Somebody has to say what everybody's actually thinking about the NYAG's inquiry. The placative kowtowing toward this kind of abuse sends the message that it's ok. It's not ok. It's insulting. https://t.co/sta9VuXPK1pic.twitter.com/4Jg66bia1I
In spite of Kraken’s controversial relationship with certain aspects of the US government, the company must be doing something right. In December, the exchange announced that its valuation had hit $4 billion and that it was seeking a small number of fundraising clients to purchase shares at a minimum of $100,000.
An email sent to investors at the time of the announcement described the fundraising round as the exchange’s effort to “[present] our most valued clients with the opportunity to become equity holders in the company.”
“We’re profitable and sitting on significant reserves so fundraising is not a necessity, however, further aligning interests with our top clients while building a war chest for acquisitions in the bear market presents a win-win opportunity,” the email said.
Rachel is a self-taught crypto geek and a passionate writer. She believes in the power that the written word has to educate, connect and empower individuals to make positive and powerful financial choices. She is the Podcast Host and a Cryptocurrency Editor at Finance Magnates.
US Prosecutors Recommend 3-Year Prison Sentence for Binance's Changpeng Zhao: Report
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
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20-22 MAY 2024
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#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
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#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
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