Yeah it's supposed to be happening. The chests/barrels/Crates around most of the starting area and inside the tutorial dungeon and around cyseal will only give whites. The reason escapes me. Once you go into another area, for example upstairs Arhu, downstairs somewhere, upstairs at the Inn - you will find legendaries. When you get further away from Cyseal, it will also only be legendaries. What level they drop at I can't really figure out. But it might be based of either your characters' level or the zones' level or a mix of the two. Which would explain why most crates drop level-scaled legendaries while others (can't remember where I picked them up) was all level 20.
