The correct answer here is either:
- Find a hosting provider you trust (or one that is compliant if regulatory issue are the problem)
- Host it yourself
If the main concern is having a secure offsite backup, host the repository yourself and use someplace like rsync.net to handle the backup (they are SOX/HIPAA compliant). A cron job that rsyncs everything every 15 minutes should be sufficient. The cron job can encrypt your backup before pushing it. Just don't lose the keys/passwords.
This way Subversion doesn't need to know anything at all about your encryption scheme, and you can go about your work without having to worry about paranoia getting in the way of productivity.
Addenda:
Since you're doing shared hosting, and shared hosts are worthless: Get a dedicated source control host. Do not ever use a shared host for source control. Shared hosts are notorious for losing data and making false claims about data security and backups. Good examples of dedicated source control hosts: CVSDude, Beanstalk, GitHub