KuCoin, a prominent crypto exchange, recently agreed to a $22 million settlement with the State of New York. The settlement includes prohibiting state residents from accessing its platform, detailed in a filed stipulation and consent order on Dec. 12.
The agreement acknowledges KuCoin’s operation of a cryptocurrency trading platform catering to users, including those in New York. However, it highlights the lack of registration as a securities or commodities broker-dealer, a violation of New York state laws.
In the order, KuCoin admits misrepresentation as an ‘exchange’ without proper registration under New York State laws.
As part of the settlement terms, KuCoin committed to closing accounts held by New York residents within 120 days and enforcing a ban on future account creation for state residents. Furthermore, withdrawal access will be restricted to a 30-day window, allowing users 90 days to withdraw funds.
KuCoin’s history includes a privacy-centric policy exempting users from adhering to Know Your Customer (KYC) or Anti-Money Laundering (AML) regulations. The exchange solely dealt with cryptocurrency, eliminating the need for banking partners enforcing compliance requirements.
