How Coinbase responds to questions from Russian authorities is unknown.
Russian authorities sent 5 user data requests to Coinbase, the crypto exchange said in a transparency report.
The crypto exchange has published a transparency report for the third time. This covers 9 months of 2021. During this time, Coinbase received 5,562 requests from regulators worldwide. According to the company, over the 3 quarters of 2021, departments are 27% more likely to be interested in user data than for the whole of 2020.
More than half (51%) of requests are received from institutions outside the United States. Most importantly, the United States, United Kingdom, and German authorities are interested in Coinbase’s user data. The demand share from these countries is 84%.
For the first time, the report includes query data from Latvia, Greece, India, Turkey, Bosnia, Hungary and Russia. The regulator of the Russian Federation sent 5 requests to crypto exchanges.
There are countries on the list where Coinbase doesn’t work officially – in particular, Ukraine. The number of requests from the Ukrainian authorities for 3 quarters of 2021 increased from 4 to 10.
According to crypto exchanges, almost all requests come from agencies investigating criminal cases – 93%. In comparison, in 2020 this figure will reach 96%.
Read also: Coinbase Transparency Report 2020.
The report doesn’t specify what the agency actually wants to know from Coinbase. In September 2020, exchanges were asked to tell exactly what information was shared with the authorities. According to the report, Coinbase is able to provide the customer’s name, the user’s last login/logout IP address, and billing information.
“If we believe that a request is too broad or unclear, we seek to narrow it down, and in some cases we generally refuse to provide any information (for example, if the request is not legally grounded),” the report said.
Coinbase may also dispute regulatory requests “depending on the specific circumstances of each request.” How many cryptocurrency exchange requests were fulfilled and how many were rejected was not reported in the report.
We will recall that, in October, the Coinbase team proposed to American regulators to establish a new department to control the digital asset market. The developer believes that the department should deal with the regulation of the digital asset market within the framework of the new infrastructure. The current measures taken by the authorities, in their opinion, are not sufficient to control projects in the decentralized finance segment.
Read also: digital capital markets are too big to ignore, crypto CEO told Congress.