Running a crypto-based financial service in the US is becoming difficult due to unconventional legal costs, cryptocurrency exchange Kraken indicated in its latest “transparency report.”
The US-based crypto exchange, which additionally operates in Canada, Europe, and Japan, reportedly received 315 subpoenas from US law enforcement agencies, including the FBI, HSI, CIA, IRS, SEC, and other government bodies. In comparison, the company received only 160 requests from other countries, which it showcased to make the case against the increasing legal costs for fintech startups in the US.
In legal terms, a subpoena is an order issued to individuals/companies for the production of documents, or a request to appear in court for legal proceedings. When law enforcement authorities investigate potential frauds, inspectors often request information from financial institutions.