KuCoin Agrees to Cease Operations in New York and Pay $22 Million Settlement
KuCoin, the Seychelles-based crypto exchange, has reached a settlement with the New York Attorney General over the illegal sale of securities and commodities. As part of the settlement, KuCoin will cease all operations in New York and pay over $22 million. The company is required to refund New York-based users over $16.7 million for crypto transactions and pay an additional $5.3 million to the Office of the Attorney General.
Admission of Operating a Crypto Exchange for Securities and Commodities
As part of the settlement, KuCoin has admitted to operating a crypto exchange where users can buy or sell cryptocurrencies that are considered securities or commodities under New York State laws. However, this falls short of the New York Attorney General’s initial goal to prove that Ethereum is a security under state law.
Impact of the Settlement on KuCoin and New York Users
Following the settlement, KuCoin’s platform is no longer accessible to internet users with New York IP addresses. This affects over 177,000 users in the state. The settlement serves as a reminder that crypto companies must comply with financial regulations, and any violations will be held accountable by the authorities.
New York’s Restrictive Crypto Policies
New York has had strict crypto policies for several years, leading some exchanges like Kraken to leave the state. In 2015, Kraken protested against new BitLicense registration laws. California recently passed a similar crypto regulation law set to take effect in July 2025.
Hot Take: Upholding Financial Regulations in Crypto Industry
The settlement between KuCoin and the New York Attorney General highlights the importance of adhering to financial regulations in the crypto industry. Crypto companies must play by the same rules as other financial institutions, and any disregard for the law will result in consequences. New York’s strict policies serve as a precedent for other states, with California following suit with its own crypto regulation law. Upholding these regulations is crucial to safeguarding investors and maintaining the integrity of the crypto market.
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