Kucoin agrees to ban New York residents and pay $22 million in settlement

December 12, 2023 Coin Telegraph

Kucoin agrees to ban New York residents and pay million in settlement

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Kucoin users from New York will lose the ability to trade within 30 days and will have their accounts closed within 120 days.

Crypto exchange Kucoin has agreed to pay $22 million to the State of New York and to bar residents of the state from using its platform, according to a stipulation and consent order filed in the New York Supreme Court on December 12.

According to the order, Kucoin admits that it “operates a cryptocurrency trading platform on which users, including users in New York state, can purchase or sell cryptocurrencies which are securities or commodities as defined under the laws of New York state and that Kucoin is not registered as a securities or commodities broker-dealer.” In addition, Kucoin “admits that it represented itself as an ‘exchange’ and was not registered as an exchange pursuant to the laws of New York State.”

Kucoin has agreed to close the accounts of all New York resident users within 120 days and to prevent New York residents from obtaining accounts in the future. In addition, it will restrict access to withdrawals only within 30 days, leaving the remaining 90 days available for users to withdraw funds.

KuCoin pledges $20K grant to TON Foundation for ecosystem development

December 1, 2023 Coin Telegraph

KuCoin pledges K grant to TON Foundation for ecosystem development

Blockchain

The funding will support TON ecosystem projects, research and development efforts, community-building and marketing activities.

KuCoin Ventures, the venture arm of Seychelles-registered crypto exchange KuCoin, will provide grants to The Open Network (TON) blockchain platform, including an initial $20,000, to support the growth and expansion of the TON ecosystem.

According to a Dec.

Ian Wittkopp, accelerator head at TON Foundation, said the grants from KuCoin aid them in continuing to support real-world blockchain solutions in payments and gaming within its ecosystem.

“Today’s partnership with KuCoin Ventures is an acceleration point in the momentum of mini-app development on the The Open Network… KuCoin Ventures’ efforts align with TON’s vision of a more accessible and decentralized digital future for everyone.”

Alicia Kao, managing director of KuCoin, attributed the move to the company’s belief in TON’s potential in the blockchain industry.

“This strategic alliance aligns with our mission of promoting further development of the crypto and blockchain industry through tighter cooperation.”

“We believe this signifies a fresh synergy between exchanges and the blockchain landscape, and we aspire that this joint effort will serve as a motivating example, spurring further similar ventures,” she added.

A KuCoin spokesperson told Cointelegraph that the partnership is in its first phase.

“This partnership is just the beginning. We plan to leverage this collaboration for deeper cooperation and communication… We are making all the necessary preparations for this… collaboration.”

Besides supporting the expansion of the TON ecosystem, KuCoin seeks to replicate its success with other blockchain collaborations “to facilitate the transition of cryptocurrency from a niche interest to mass adoption.”

Huobi, KuCoin, over 140 crypto exchanges ‘non-authorized’ — UK regulator

October 9, 2023 Coin Telegraph

Coin Telegraph

The FCA’s list of registered crypto asset providers includes 42 entities and hasn’t changed since August.

The United Kingdom’s financial markets regulator, The Financial Conduct Authority (FCA), had a busy Sunday on Oct. 8, as it added several crypto exchanges to its warning list of non-authorized firms that customers “should avoid.”

A total of 143 new entities were added to the warning list, including major exchanges, such as Huobi-owned HTX and KuCoin. The warning list doesn’t reveal much apart from the statement, “You should avoid dealing with this firm.”

However, in the U.K., firms permitted to “carry out crypto asset activities” must either be registered with the FCA or have been granted temporary status to operate. In July, Jayson Probin, crypto financial promotions lead at the FCA, suggested that failure to comply could result in criminal charges:

“We will take robust action against persons illegally promoting to U.K. consumers. This may include, but it is not limited to, placing firms on our warning list requesting take downs of websites, social media accounts, apps and all other promotions that are in breach, and enforcement action.”

In August, the FCA revealed that since 2020, it has received 291 applications for registration and approved only 38 of them, which is roughly 13%. At the time of publication, the FCA’s list of registered crypto asset providers includes 42 entities, such as Bitstamp, Revolut and Gemini.

PayPal has recently halted crypto transactions for its U.K. customers until it figures out how to comply with the FCA’s requirements. Dubai-headquartered cryptocurrency exchange Bybit also suspended all its services in the U.K. in late September due to “regulatory changes.”

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KuCoin suspends Bitcoin and Litecoin mining pools

August 2, 2023 Coin Telegraph

Coin Telegraph

"We deeply regret any inconvenience this might cause and we remain grateful for your unwavering support and understanding," the exchange wrote.

KuCoin's Bitcoin (BTC) and Litecoin (LTC) mining pools will be suspended from 16:00:00 on Aug. 15, 2023 (UTC) until further notice.

The exchange said the decision was "in line with KuCoin's evolving business strategy" but didn't elaborate further. It's unclear if the decision is related to the upcoming Litecoin halving. KuCoin staff wrote:

"To ensure uninterrupted earnings during our temporary suspension, users who are involved in cryptocurrency mining, we recommend transitioning your BTC and LTC miners to alternative mining pools before 16:00:00 on August 15, 2023 (UTC)."

The exchange also warned users to back up and preserve their mining records and related data before Aug. 27.

Currently, the KuCoin Bitcoin and Litecoin mining pools have hash rates of 9.08 exahash per second (EH/s) and 3.90 terrahash per second (TH/s), respectively. On the whole, the Bitcoin network has a hash rate of 349.19 EH/s, compared to 792.16 TH/s for the Litecoin network.

Cointelegraph previously reported that KuCoin is preparing to lay off 30% of its workforce. The exchange denied it was doing so, stating that it had not initiated any layoff plans. CEO Johnny Lyu wrote:

"First things first, KuCoin is operating smoothly. Our recent H1 2023 report shows strong growth in users and new listings, and our talented team is expanding steadily."

Since July, the exchange has implemented mandatory Know Your Customer (KYC) requirements for its users. Existing customers will be barred from depositing unless they complete KYC. The exchange says it has over 20 million registered accounts.

SCOOP: Following Binance, cryptocurrency exchange KuCoin will lay off 30% of its workforce. Confirmed by more than three internal employees. KuCoin has nearly 1,000 employees. The main reason is that the strict KYC policy was launched after being sued by the United States, which…
— Wu Blockchain (@WuBlockchain) July 25, 2023

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Privacy is not the core feature of Bitcoin, KuCoin CEO says

July 7, 2023 Coin Telegraph

Coin Telegraph

KYC is an important measure for crypto exchanges to protect and recover user funds in the case of theft or hacking, KuCoin CEO Johnny Lyu said.

Amid KuCoin exchange preparing to adopt mandatory Know Your Customer (KYC) checks, the company’s CEO argued that privacy is not the most important feature of Bitcoin (BTC).

“When it comes to the purpose of Bitcoin creation, I think privacy is just one of its features,” KuCoin CEO Johnny Lyu told Cointelegraph in an interview on July 4.

Instead of privacy, the core benefit of Bitcoin is a unit of exchange, which allows holders to hedge against recessions, Lyu hinted. The CEO mentioned that Bitcoin was created after the 2008 financial crisis, which was triggered by the United States subprime mortgage crisis. “These events led to the birth of Bitcoin,” Lyu noted.

While some may believe that overly strict KYC practices are not good for users as they may limit one’s privacy, the KuCoin CEO believes that such policies are more useful than not, as they improve the security of users’ funds.

“KYC is aimed to protect the assets of the public and to ensure that assets are protected on two different levels,” Lyu said, adding:

“The first level is ownership, so you know that the money is yours. And the second level is that you can actually track your assets in the case of theft. So if you lost your assets, we’ll be able to track the source and make sure the source is clean.”

The cryptocurrency industry will be increasingly interacting with the physical world, which is why compliance is necessary, KuCoin CEO went on to say.

“So in essence, in the whole development cycle of crypto, I would say that KYC, it is a stage that is inevitable and it is very healthy as well,” Lyu added.

KuCoin officially announced in late June that it would be introducing mandatory KYC checks for all new users on its platform starting from July 15, 2023. Without completing KYC, newly registered users will not be able to access KuCoin’s products and services. At the same time, existing non-KYC users will still be able to trade, but will be restricted from depositing new funds.

The new KYC restrictions at KuCoin are likely to affect the platform’s trading volumes in the short term, the CEO told Cointelegraph.

“We understand that in the short run, as the rules become more stringent and strict to certain customers, some may leave,” Lyu said. However, KuCoin remains bullish on compliance on crypto exchanges in the long term, he added, stating:

“But in the long run, more compliant funds and users will enter this industry in the future, which is equivalent to opening the door for everyone better and making users more secure.”

According to KuCoin, the platform currently has 27 million users, which is a 35% increase from the number of users it had one year ago. Following the KYC upgrade announcement, KuCoin’s trading volumes significantly edged up from around $540 million to more than $660 million at the time of writing, according to data from CoinGecko.

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KuCoin Rolls Out Mandatory KYC Rules for All Customers To ‘Embrace Regulation’

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KuCoin crypto exchange to introduce mandatory KYC in July

June 28, 2023 Coin Telegraph

Coin Telegraph

KuCoin’s Know Your Customer checks will require new users to complete identity verification to access all services, while existing non-KYC users will not be able to deposit.

Major cryptocurrency exchange KuCoin is working to strengthen its Know Your Customer (KYC) system by introducing new mandatory identity checks.

On June 28, KuCoin officially announced the upcoming KYC system upgrade in a move to increase compliance with global Anti-Money Laundering regulations.

The KYC authentication upgrade introduces mandatory KYC checks for all new users at KuCoin starting from July 15, 2023. Without completing KYC, newly registered users will not be able to access KuCoin’s suite of products and services, the firm said.

Existing users who registered before July 15, 2023, will also have to complete the KYC process to access some features on KuCoin. Such users will not be able to deposit new funds, while withdrawals will remain unaffected, the announcement notes.

KuCoin’s existing users will still be able to use services like spot trading sell orders, futures trading deleveraging and margin trading deleveraging. Other available services for existing non-KYC users include redemptions at KuCoin’s staking and lending hub, KuCoin Earn, as well as exchange-traded funds’ redemption.

“A complete KYC process requires users to provide their name, identification number, and identification photo, and undergo facial recognition,” KuCoin CEO Johnny Lyu told Cointelegraph. The CEO noted that KuCoin brains and verifies the customer identification and verification data required under the laws and regulations of applicable jurisdictions. He stated:

“Typically, we require customer identification information including information on the customer’s name and further identifiers such as a physical address, date of birth, and national ID number.”

Pursuant to the requirements of the laws and regulations of applicable jurisdictions, KuCoin also collects additional information related to the customer’s business and risk profile. Risk profile data includes nature and volume of trading activity, origin of virtual funds deposited, Lyu added.

The CEO went on to say that KYC is a principle that “KuCoin has always adhered to,” adding that identity recognition is an existing process. Lyu also stressed that KuCoin set their KYC policy to comply with regulations in applicable jurisdictions since there isn’t a unified global KYC regulation.

The new KYC update will affect a significant number of cryptocurrency users worldwide. KuCoin says it had over 20 million registered accounts on its platform as of July 2022.

KuCoin is also one of the world’s largest crypto exchanges by trading volumes. At the time of writing, KuCoin’s daily trading volumes amount to around $540 million, with more than 8 million monthly visits, according to data from CoinGecko. To compare, major United States-based exchange Kraken has about 5 million visits per month, with about $380 million worth of crypto traded daily.

Some other cryptocurrency exchanges have been increasing their KYC policies recently as well. In May, Bybit exchange restricted non-KYC users from withdrawing more than 20,000 Tether (USDT) monthly. Cybercriminals have capitalized on KYC requirements, reportedly selling hacked and verified crypto accounts on the darknet for $30 as of April 2023.

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Bear market allows crypto companies to ‘listen’ to users: KuCoin exec

June 19, 2023 Coin Telegraph

Coin Telegraph

Dorian Vincileoni, an executive at KuCoin, spoke with Cointelegraph at the Proof of Talk blockchain conference in Paris about navigating the state of the current market.

Crypto has been at the mercy of an ongoing bear market that began in the spring of 2022, after a historic bull run that had investors, developers and users piling into the Web3 space.

Despite interest slowing down and companies needing to adjust to the current market conditions, many in the space still view this as a time to mature the industry.

Cointelegraph spoke with Dorian Vincileoni, the Europe business development lead of KuCoin, at the Proof of Talk 2023 blockchain conference on how companies in the space can best utilize the bear market with users as the main focus.

*Dorian Vincileoni, the Europe business development lead of KuCoin (left)* *with Cointelegraph Reporter Savannah Fortis at Proof of Talk 2023 in Paris. Source: Cointelegraph*

Vincileoni told Cointelegraph that bear markets have given companies time to build, innovate and develop products and services to create more efficiency for users. He explained that during bull markets there is “so much noise on the market” making it harder to hear community needs.

“When it's a bear market, you have much more legitimate opinions from your organic user base. We are closely listening to what our organic base is saying and what they are interested in.”

The executive continued by saying this is not the time for exchanges to be “dragged by the spiral of negative news” but rather to focus on improvement to know where to go next when favorable market conditions return.

“We really try to look at communities. If there is an actual organic community invested in this project or interested, then it's our objective to provide service to them.”

“One thing that we have seen is that throughout this bear market, projects still managed to create organic communities,” he said. “The level of interest in the market is down but not nonexistent at all.”

KuCoin is not alone in its community-first approach. Cointelegraph recently spoke with Binance’s new VP of marketing, who also stressed that the crypto space needs to ‘double down’ on community support during both the bear market and regulatory uncertainty.

Vincileoni said when it comes to regulatory uncertainty they have stopped trying to “assume” what’s next. Instead, when given clarity it’s best to then react and adapt, calling the space an “adaptive race.”

“We really try to focus on what we know how to do and what we have an influence on, which is guaranteeing the safety of the assets of users at all times. [The industry] can have a real impact on this.”

In fact, he told Cointelegraph that a market survey done by KuCoin revealed a large interest from users regarding the implementation of AI for security purposes.

Recently, the cryptocurrency exchange’s Twitter account was subject to a compromise that resulted in users losing funds due to a fake giveaway announcement.

Vincileonoi closed by saying despite the current conditions he believes the market is still “filled with opportunities” and that “we are really in the beginning of an era that we barely can envision.”

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