The DoJ is warning foreign exchanges that they must comply with US laws and regulations concerning the Bank Secrecy Act and KYC/AML regulations - even for their non-US customers. The DoJ is has prepared a framework for its approach to financial crime in the crypto space.
The basis why the DoJ believes it has jurisdiction over transactions between non-US residents on exchanges not on US soil is this (VASP stands for Virtual Asset Service Provider meaning crypto exchanges):
“The Department also has robust authority to prosecute VASPs and other entities and individuals that violate U.S. law even when they are not located inside the United States. Where virtual asset transactions touch financial, data storage or other computer systems within the United States, the Department generally has jurisdiction to prosecute the actors who direct or conduct those transactions.”
So, only if an exchange on foreign soil owned and managed by foreign nationals whose customers are all non-US residents does not allow bank transfers from US banks and does not use any cloud-based or other data storage or other services as part of its IT systems based in the US it should be safe from the Empire. Otherwise its owners and managers will risk criminal charges in the US and extradition requests from the US government if US law is not complied with.
I think this is a bit far fetched. Americans, I'm sorry you have to pay for this crap through your taxes. Please try and vote the bad people who draft laws that facilitate overreaches like this out of office.
I wonder how this would apply to Hive in a potential future where regulators have become even more aggressive than they're now and Hive is a thousand times larger than it is now and no longer flies under the radar. The internal exchange is a DEX. But Hive has a lot of American witnesses. Should they all be voted out before US authorities enforce KYC on every Hive user in case that becomes an actual threat? Much of the infrastructure of Hive heavily relies on US-based cloud services. There is no limit to what the fuckers in the US Govt can get into their power tripping minds. To fully future proof Hive, it should it have full readiness to cut all ties to the United States when it comes to its infrastructure and witness pool?