Kucoin Tightens its KYC Policy After US Lawsuit


An official announcement from Kucoin said that the cryptocurrency exchange plans to enhance its know-your-customer policy. The announcement, titled Enhancement of Kucoin Customer Identification and Verification Program, stated that all new Kucoin customers must submit to full KYC before using the company’s services. The exchange said that the enhanced ID policy has become necessary to prevent money laundering, terrorism financing, and other global financial crimes.

  1. Starting July 15, 2023 (UTC), newly registered users must complete their KYC in order to use KuCoin’s products and services.
  2. For users who registered before July 15, 2023 (UTC), if their KYC is not completed, they will only be able to use services such as Spot trading sell orders, Futures trading deleveraging, Margin trading deleveraging, KuCoin Earn redemption, and ETF redemption and will not be able to use the deposit service (withdrawals are not impacted).

A lawsuit charges misrepresentation

These are coming months after US authorities moved against the cryptocurrency exchange known for its liberal KYC policies. Kucoin, considered one of the more liberal exchanges, has rolled out a more stringent KYC policy. This is a sequel to a lawsuit by the US authorities. The exchange is known to have a large number of US users.

In March, the New York Attorney General (NYAG), filed a lawsuit against the company. It alleged that Kucoin misrepresented itself and its operations, stating that what the company operates is unregistered securities and commodities despite its claims of running just an exchange.

Author: Miriam