Share this article
Hamstringing an Industry With Compliance Costs
The risk to the industry when crypto companies have to spend millions on compliance, plus new BTC mining in TX and the IMF on digital currencies.
Updated Sep 13, 2021, 12:06 p.m. Published Jan 7, 2020, 8:00 p.m.
Make us preferred on Google
Between Kraken's $1 million spend on subpoena responses in 2019 and stories like the $2 million it cost Blockstack to raise $23 million in an SEC-compliant token sale (8.7 percent of the raise), it begs the question: Will compliance costs fundamentally limit innovation by demanding big war chests to play? Will the most successful companies be those that (like Block One) simply raise enough to pay off the regulators on the back end?
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Later, we look at new mining interests in Texas, what it means for American mining and bitcoin mining in the lead up to the halving more broadly. Finally, we'll dissect an op-ed from the IMF’s chief economist on the strength of the dollar over digital alternatives.
Topics discussed
Kraken annual transparency report shows off growing regulatory inquiries and increasing cost of compliance
Related Article: Law Enforcement Data Requests Rose by Almost 50 Percent in 2019, Says Kraken
New global interests in giant Texas-based bitcoin mining operation
Related Article: SBI, GMO to Rent Capacity at Massive Bitcoin Mine in Texas: Report
The IMF’s chief economist on why digital currencies don’t threaten the dollar’s global reserve currency status
Related Article: Digital Currencies Won't Replace US Dollar Any Time Soon: IMF Chief Economist
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
Bitcoin remains subdued as gold races to new record above $5,400 following Jerome Powell remarks
Gold fans rushed in to buy as the Fed chair said he took no macro signal from the raging bull market in precious metals.
What to know:
- Gold soared to a new record on Wednesday afternoon, quickening its rise as Fed Chair Jerome Powell spoke at his post-meeting press conference.
- Bitcoin continues to trade in a very tight range around $89,000.
- "Crypto is underperforming some of the very assets it was designed to supplant," said one analyst.
Top Stories
