Kraken is requesting a federal court in San Francisco to intervene in the issue and ask the United States Internal Revenue Service (IRS) to back off from its demand for customer information. The crypto exchange has deemed the demand as an "unjustified treasure hunt," citing Coinbase's case from 2017 and claiming that the IRS has gone "far beyond" its intrusive summons. Kraken has joined Coinbase in pushing back against growing regulatory scrutiny by American regulators. The growing pushback from regulatory bodies has become a concern for crypto companies in the US, with some warning that it will force budding crypto companies to move offshore.

(By PRASHANT JHA)