Sanction on kucoin exchange by SEC of USA too strict??

[Macjaja24]

There's some really concerning news circulating about KuCoin, the Department of Justice has filed charges against KuCoin and its founders for allegedly violating anti-money laundering laws. The government claims that KuCoin ran an unlicensed money-transmitting business and failed to comply with the Bank Secrecy Act. They also accused the exchange of misleading regulators about its US customer base. These serious allegations have raised concerns about the integrity and trustworthiness of the crypto industry.

Amidst the charges, traders are facing withdrawal issues on KuCoin, adding to the frustrations surrounding the exchange. As a result, many are searching for a more reliable alternative to meet their trading needs. Bitget exchange has emerged as a popular choice, personal am attracted by their user-friendly interface, strong security measures, and excellent customer support. Switching to this exchange may offer traders a safer and more satisfactory trading experience.

This recent development highlights the importance of cryptocurrency exchanges adhering strictly to anti-money laundering laws. The allegations against KuCoin serve as a reminder that no exchange can afford to disregard regulations and compromise customer safety.

[Cryptsafe]

The attacks on Mega crypto exchanges is not a new thing anymore. We all know that the US government are always at it haunting for big fish to prey on. They did it to binance, they did it to other exchange and now it is kucoin. They are always looking for a way to ake out money from whatever they deem fit to be able to deliver.

So far this goes a long way to show us how centralised exchange can be regulated and possibly be under the raider of the government.  The government dictate whatever  they want for them to do and by doing so, the exchange complies because they are all out for the business and would recover their money back from their customers. However, I have not really seen any decentralised exchange facing this issue of us government coming after them because their identity is unknown.

This is the reason why Satoshi went solo and refused to make himself known which is a good one. Since the government does not know the identity behind the decentralised exchange, they have not been able to apprehend them as nobody to is to be held. I think decentralised exchange is far much okay than centralised exchange.

[NotATether]

Well well well, look what we have here.

They had it coming though.

Most likely what happens is that they either go the Binance route and all the executive leadership resigns and/or gets charged, and get replaced with new leadership, or they go the way of the less fortunate exchanges and close up shop, possibly without remitting withdrawals but I think that's a bit extreme.

[TomPluz]

This recent development highlights the importance of cryptocurrency exchanges adhering strictly to anti-money laundering laws. The allegations against KuCoin serve as a reminder that no exchange can afford to disregard regulations and compromise customer safety.

We are now entering the time when people would be so careful with crypto exchange platform they are dealing with. In USA, an exchange should have all the permits as required by law and should work according to the wishes of SEC otherwise there can be cases to be filed against it and just like CZ of Binance a prison term can be meted against the people behind it. Now, after Binance and Coinbase, it would be the turn of Kucoin to experience the power and influence of SEC as it is extending its lawfare against all exchanges accepting member or users from USA or USA citizens anywhere in the world. Well, the message is quite clear if an exchange has no permit to do business in USA then block US-based prospects from using the platform...plain and simple. For sure, this Kucoin debacle would be sending that feeling of fear to many other exchange platforms and many would be implementing changes in their business strategies.

[Husires]

There is no entity called Kucoin in the United States, but rather a digital derivative assets license, but several companies named are Mek Global Limited, PhoenixFin PTE Ltd., Flashdot Limited, and Peken Global Limited. These entities did not adhere to banking secrecy and shared customer data, which puts them under the jurisdiction of the CFTC regulations

The complaint charges KuCoin illegally dealt in off-exchange commodity futures transactions and leveraged, margined, or financed retail commodity transactions; Solicited and accepted orders for commodity futures, swaps, and leveraged, margined, or financed retail commodity transactions without registering with the CFTC as a futures commission merchant (FCM); failed to diligently supervise its FCM activities; operated a facility for the trading or processing of swaps without registering with the CFTC as a swap execution facility (SEF) or designated contract market (DCM); and failed to implement an effective customer identification program (CIP).

https://www.cftc.gov/PressRoom/PressReleases/8884-24

Such lawsuits could end in settlements that result in huge sums being paid to the CFTC, penalties for both Chun Gan and Ke Tang, and a ban on providing service to anyone in the United States.

Kucoin's days in the United States are numbered, and more countries may try to scrutinize the legal records of this platform.

[Zed0X]

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Such lawsuits could end in settlements that result in huge sums being paid to the CFTC, penalties for both Chun Gan and Ke Tang, and a ban on providing service to anyone in the United States.

Yeah, it's likely going to cost them 1 to 2 Billion USD just like what happened to Binance.

Kucoin's days in the United States are numbered, and more countries may try to scrutinize the legal records of this platform.

I'm waiting for our own regulatory body (Phil. SEC) to issue either a warning or a ban of the said exchange. It's going to be the same reason as unlicensed exchange that offers services to local citizens (like what Binance did).

[Gurujebs]

Well well well, look what we have here.

They had it coming though.

Most likely what happens is that they either go the Binance route and all the executive leadership resigns and/or gets charged, and get replaced with new leadership, or they go the way of the less fortunate exchanges and close up shop, possibly without remitting withdrawals but I think that's a bit extreme.

Does the US speaks for the rest of the world? I may have to agree that Binance is guilty base on the fact that CZ confess just to save the exchange from any further damage but do we have to bend down for US anytime they bring their conspiracy theory and propaganda? If the way they scrutinized exchanges and crypto is the same energy the use to query banks, many of them wouldn't exist today.

If I'm Kucoin, I will kindly exit their market from the beginning because nothing good comes from their traditional financial watchdogs, always trying to make crypto looks like sheet yet they don't mind taking 30% tax from their citizens investment.

[MCcabe Rory]

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Such lawsuits could end in settlements that result in huge sums being paid to the CFTC, penalties for both Chun Gan and Ke Tang, and a ban on providing service to anyone in the United States.

Yeah, it's likely going to cost them 1 to 2 Billion USD just like what happened to Binance.

Kucoin's days in the United States are numbered, and more countries may try to scrutinize the legal records of this platform.

I'm waiting for our own regulatory body (Phil. SEC) to issue either a warning or a ban of the said exchange. It's going to be the same reason as unlicensed exchange that offers services to local citizens (like what Binance did).

That's crazy amount though, I'm mor concerned by their reputation and their users. Where are they turning to now?

[CryptoTalisman]

~
Such lawsuits could end in settlements that result in huge sums being paid to the CFTC, penalties for both Chun Gan and Ke Tang, and a ban on providing service to anyone in the United States.

Yeah, it's likely going to cost them 1 to 2 Billion USD just like what happened to Binance.

Kucoin's days in the United States are numbered, and more countries may try to scrutinize the legal records of this platform.

I'm waiting for our own regulatory body (Phil. SEC) to issue either a warning or a ban of the said exchange. It's going to be the same reason as unlicensed exchange that offers services to local citizens (like what Binance did).

That's crazy amount though, I'm mor concerned by their reputation and their users. Where are they turning to now?

Investors will always find alternatives no matter what. They did when Binance left and Kucoin obviously wouldn't have much effect. What investors should be looking out for right now to avoid moving from one cex to another is to look for a regulatory compliant exchange like Bitget. This will give users peace of mind rather than moving from pillar to post every time.

[electronicash]

the rise of Bitget is actually surprising for me. of all things that will surface above right now is a new exchange that will swept the rest of the big exchanges. so why is the regulators allowing this bitget to arise without having to look into them?  of all time to look at a rising platform is when its starting to grow because they still can prevent it from laundering.
i say Bitget is a regulator's bait exchange. its luring crypto users to go there while they are banning the big exchanges.

as for kucoin, founders running away from the accusation will not only make the situation worse.

[MCcabe Rory]

the rise of Bitget is actually surprising for me. of all things that will surface above right now is a new exchange that will swept the rest of the big exchanges. so why is the regulators allowing this bitget to arise without having to look into them?  of all time to look at a rising platform is when its starting to grow because they still can prevent it from laundering.
i say Bitget is a regulator's bait exchange. its luring crypto users to go there while they are banning the big exchanges.

as for kucoin, founders running away from the accusation will not only make the situation worse.

Maybe they're doing something right and are compliant to regulations. Give them their flowers.

[Gurujebs]

Investors will always find alternatives no matter what. They did when Binance left and Kucoin obviously wouldn't have much effect. What investors should be looking out for right now to avoid moving from one cex to another is to look for a regulatory compliant exchange like Bitget. This will give users peace of mind rather than moving from pillar to post every time.

The fact that US investors have coinbase exchange but still they are running to other global exchange where they can make their money without tight regulations means that even though Kucoin exit their market, they will still look for other alternatives to trade, the investors are always limited with coins that are not that profitable.

Imagine coins like meme coins that can give quick profits but because you reside in a country where you don't have access to do buy these trending coins but yet you are allow to do crypto, I just think that the US government is over protecting its citizens if that's what the call it.

[AvatarSiri]

the rise of Bitget is actually surprising for me. of all things that will surface above right now is a new exchange that will swept the rest of the big exchanges. so why is the regulators allowing this bitget to arise without having to look into them?  of all time to look at a rising platform is when its starting to grow because they still can prevent it from laundering.
i say Bitget is a regulator's bait exchange. its luring crypto users to go there while they are banning the big exchanges.

as for kucoin, founders running away from the accusation will not only make the situation worse.

Maybe they're doing something right and are compliant to regulations. Give them their flowers.

They are actually, getting closer to the community is one..their recent support of Slerf is commendable and it seems they're also regulatory compliant. Yeah they deserve a kudos.

[electronicash]

the rise of Bitget is actually surprising for me. of all things that will surface above right now is a new exchange that will swept the rest of the big exchanges. so why is the regulators allowing this bitget to arise without having to look into them?  of all time to look at a rising platform is when its starting to grow because they still can prevent it from laundering.
i say Bitget is a regulator's bait exchange. its luring crypto users to go there while they are banning the big exchanges.

as for kucoin, founders running away from the accusation will not only make the situation worse.

Maybe they're doing something right and are compliant to regulations. Give them their flowers.

They are actually, getting closer to the community is one..their recent support of Slerf is commendable and it seems they're also regulatory compliant. Yeah they deserve a kudos.

regulatory compliant?  our government doesn't even know this exchange exist but people are already registering to this exchange like its a casino that giving free spin. 
but the people in India or Nigeria i think will be grateful to have this exchange up and running.

they could only hope in the next few years, bitget is not going to be targeted by the government for the government they will discover the users in Kucoin who the government already have records of are in bitget.

I don't know why SEC US is coming after Kucoin, is the government of Korea not capable of regulating crypto?