KuCoin, agreed to pay a US$22 million for exit the New York market

 

KuCoin, a major cryptocurrency exchange, has agreed to pay a US$22 million settlement and exit the New York market to resolve a lawsuit filed by the state's Attorney General's office.

According to a Reuters report, the lawsuit alleged that KuCoin offered unregistered securities and failed to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations. The settlement, which was announced on Thursday, requires KuCoin to cease offering unregistered securities to New York residents and to geoblock them from accessing its platform.

The settlement is a significant victory for the New York Attorney General's office, which has been cracking down on cryptocurrency exchanges that it believes are operating illegally in the state. Last year, the office reached similar settlements with Bitfinex and Tether, requiring them to pay fines and implement new compliance measures.

"This settlement sends a clear message that cryptocurrency platforms must comply with the law," New York Attorney General Letitia James said in a statement. "We will continue to hold accountable any company that violates our securities laws or puts New York investors at risk."

KuCoin said in a statement that it had cooperated with the New York Attorney General's office and was pleased to have resolved the matter. The company said it would continue to comply with all applicable laws and regulations.

"We are committed to providing our users with a safe and compliant trading platform," KuCoin said in a statement. "We have taken significant steps to enhance our compliance program and we are confident that we will continue to meet the high standards set by regulators around the world."

The settlement is the latest development in a broader effort by U.S. regulators to bring the cryptocurrency industry under their oversight. The Securities and Exchange Commission (SEC) has also been cracking down on cryptocurrency exchanges, and has issued a number of subpoenas and enforcement actions in recent months.

It remains to be seen whether the settlement with KuCoin will have a broader impact on the cryptocurrency industry. However, it is clear that U.S. regulators are taking a more aggressive approach to regulating the industry, and that cryptocurrency exchanges will need to comply with all applicable laws and regulations in order to operate in the United States.

Additional Information:

• The settlement between KuCoin and the New York Attorney General's office was announced on Thursday.
• The settlement requires KuCoin to pay a US$22 million fine and to cease offering unregistered securities to New York residents.
• The settlement also requires KuCoin to geoblock New York residents from accessing its platform.
• The settlement is the latest development in a broader effort by U.S. regulators to bring the cryptocurrency industry under their oversight.
• It remains to be seen whether the settlement with KuCoin will have a broader impact on the cryptocurrency industry.

Sources:

• Reuters: https://www.reuters.com/legal/new-york-sues-kucoin-expands-cryptocurrency-crackdown-2023-03-09/
• New York Attorney General's office: https://ag.ny.gov/
• KuCoin: https://www.kucoin.com/