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There was a hot development in the cryptocurrency world today. The development is related to KuCoin, which is under investigation by the US Department of Justice. Accordingly, it is stated that the crypto asset trading platform license application submitted to the Hong Kong Securities Regulatory Commission by HKVAEX, which is claimed to be the Hong Kong arm of KuCoin and is also associated with Binance, was withdrawn on March 28.
Why KuCoin Withdrew the Application?
Of course, there may be reasons for KuCoin to withdraw its application. This development reveals the necessity for a leading cryptocurrency exchange like KuCoin to be sensitive to comply with legal processes in the future. The exchange may have withdrawn the application to complete this process in the best way possible.
On the other hand, the launch of an investigation by the US authorities may have caused a change in the view of KuCoin in different countries. The exchange seems to have taken a step by taking the possibility that its application will be rejected.
The Cryptocurrency Industry May Be Under Legal Scrutiny
The cryptocurrency industry has been under increased regulatory oversight in recent years. Authorities are prioritizing issues such as anti-money laundering and know-your-customer. Concerns about consumer protection and market integrity have also been at the forefront. The US Department of Justice’s actions against KuCoin can be considered a reflection of this increased regulatory pressure on cryptocurrency exchanges.
In this challenging environment, cryptocurrency exchanges are trying to both maintain operational efficiency and comply with legislation. For example, Binance has reached an agreement with the US Department of Justice.
Response from KuCoin on the Subject
After writing our news, the cryptocurrency exchange KuCoin contacted us and informed us that HKVAEX is not part of KuCoin and has no connection with the cryptocurrency exchange KuCoin.
