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Global: KuCoin to Suspend U.S. Operations Following Legal Settlement

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KuCoin to Suspend U.S. Operations Following Legal Settlement
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Cryptocurrency exchange KuCoin will exit the United States market for a minimum of two years after its operator, Seychelles-based Peken Global Limited, pleaded guilty to operating an unlicensed money transmission business. The legal resolution, announced on Monday, January 27, includes substantial penalties and leadership changes within the company.

Legal Penalties and Leadership Changes

Peken Global Limited will pay over $297 million in monetary penalties as part of the settlement. Additionally, two of KuCoin’s founders, Chun (Michael) Gan and Ke (Eric) Tang, will step down from all management and operational roles within the company.

U.S. Attorney Danielle R. Sassoon from the Southern District of New York emphasized KuCoin’s failure to implement required anti-money laundering (AML) policies, which facilitated billions of dollars in suspicious transactions. These transactions allegedly included proceeds from darknet markets, malware attacks, ransomware, and fraud schemes.

“Today’s guilty plea and penalties highlight the consequences of non-compliance with essential regulatory frameworks and the facilitation of unlawful activities,” Sassoon said.

KuCoin’s Response and Compliance Efforts

In a statement, KuCoin expressed satisfaction with the resolution and highlighted the company’s strides in improving compliance and platform security over the past two years.

“These efforts include expanding our compliance team, securing licenses in key markets, and adopting stringent security measures to safeguard user assets and enhance platform resilience,” KuCoin stated.

While exiting the U.S. market temporarily, KuCoin affirmed that its operations in other global markets remain unaffected. The company reiterated its commitment to working collaboratively with regulators to uphold high standards of governance and operational responsibility.

New Leadership and Future Plans

KuCoin’s newly appointed CEO, BC Wong, who previously served as chief legal officer, will lead the company forward. Wong played a pivotal role in shaping KuCoin’s compliance framework.

“Although we are exiting the U.S. market for now, we are prioritizing the enhancement of global compliance practices and exploring opportunities to reenter the U.S. with the necessary licenses,” Wong said in a company release.

A Broader Regulatory Crackdown

The KuCoin settlement marks one of the final cases from the cryptocurrency enforcement actions initiated during former President Joe Biden’s administration. As the cryptocurrency industry navigates evolving regulations, KuCoin’s case underscores the importance of compliance in a rapidly changing landscape.

With the arrival of President Donald Trump, dubbed “America’s first crypto president” during his campaign, the industry anticipates new regulatory approaches as his administration’s policies begin to take shape.

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