Overwhelming Subpoenas Chasing Crypto Exchanges Out of U.S.

Popular cryptocurrency exchange, ShapeShift, has published a new report revealing the number of subpoenas it received from the United States authorities alone last year while not based on the country.

Strings Attached

As seen from the published report, cryptocurrency exchanges and startups whether based in the United States or situated in a friendlier climate like a Swiss atmosphere, are not immune to the legal ordeals attached to it. In 2018 alone, ShapeShift recorded a total of 18 subpoenas issued by the United States authorities, despite the fact the company was not under US jurisdiction. The 18 requests filed totaled 30 percent of requests received by the company. This only goes as far to strengthen the notion that US authorities rank almost every time at the top, and the cryptosphere might just not be any different.
ShapeShift, along with a host of popular crypto firms had to lose a good portion of their staffs after a hard year of bears and decline. The year 2017 saw many of these crypto exchanges expand beyond previously unimagined horizons, have a lot of crypto coins recorded all-time highs.
ShapeShift reported a staggering increase of more than 3000 percent and only logically expanded other departments as well including its legal arm. Eric Voorhees, ShapeShift’s founder, and CEO talked about the expansion and the consequent thinning that followed after, with expansions calling for more legal interests and probes. He said:

“As a company, we’ve made a thousand mistakes. The most thematic has been a lack of focus. Here’s the lesson we learned: regardless of any particular project’s marketability, they were pulling our attention in too many directions. They cost financial resources. They required legal review. And then further review and then additional review after that.”

This is the U.S.

The United States government and its authorities have unsurprisingly shown more interest in crypto exchanges even than prospective customers, Kraken suggests. Like ShapeShift, Kraken reports that about 66 percent of requests it received in 2018 were filed by the US, even if its user base barely boasted 20 percent of United States citizens, with most of its customers European.

“US is about 1/5 of clients but 2/3 of requests. US agencies are much more active and are much less surgical.” Kraken reported.

It is, therefore, no surprise that US-based exchanges like Coinbase have been confirmed to have dozens of employees dedicated to regulations and regulatory bodies within the US.

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