According to Cointelgraph: Cryptocurrency exchange KuCoin has agreed to pay a $22 million settlement to the State of New York and to prevent residents of the state from using its platform, as per a stipulation and consent order filed on Dec. 12 in the New York Supreme Court.
As part of the order, KuCoin acknowledges that it runs a cryptocurrency trading platform on which users, including those in New York, can purchase or sell cryptocurrencies considered securities or commodities under New York state laws, despite KuCoin not being registered as a securities or commodities broker-dealer.
Moreover, KuCoin admits to presenting itself as an 'exchange' while lacking appropriate registration in New York State.
KuCoin has agreed to close the accounts of all New York-based users within 120 days and to block any future New York residents from opening accounts. It will restrict access to withdrawals to just within the first 30 days of this period, leaving the remaining 90 days for users to withdraw remaining funds.
Previously known for its pro-privacy policy that did not require user compliance with Know Your Customer (KYC) or Anti-Money Laundering (AML) regulations, KuCoin only accepted cryptocurrency for deposits and withdrawals, avoiding the need for banking partners who might demand such compliance.
However, on June 28, KuCoin ended this policy by mandating KYC for all users, blocking all deposits from non-verified accounts and pausing all services to these users after July 15, though withdrawals remained accessible.
The Dec. 12 settlement confirmed that some of the users affected by these changes were New York residents. KuCoin averages over $1 billion in daily trading volume and sees over two million weekly website visits, according to CoinMarketCap data.
