US charges KuCoin crypto exchange with anti-money laundering failures (2024)

FAQs

US charges KuCoin crypto exchange with anti-money laundering failures? ›

The indictment alleges that KuCoin failed to design and implement procedures to prevent it from being used for money laundering and terrorist financing, failed to maintain reasonable procedures for verifying the identity of customers, and failed to file any Suspicious Activity Reports.

U.S. federal prosecutors charged crypto exchange KuCoin and two of its founders with violating anti-money laundering laws on Tuesday, saying the exchange operated in the U.S., lied to at least one of its investors about operating in the U.S. and failed to both register with U.S. government entities and maintain an anti ...

KuCoin isn't licensed to operate in the US, so its verification process (KYC) isn't available. It only provides unlimited access to users who can be verified, which restricts US customers. For example, US users can't access deposit services and face withdrawal limits.

However, KuCoin is not supported in the US because it doesn't have a license to operate there. While you can create an account if you're living or traveling in the US, you won't be able to access its verification process or any of its services. Therefore, the only way to use KuCoin in the US is to use a VPN.

Prosecutors alleged KuCoin solicited business from U.S. customers and served numerous people located in the U.S. But the exchange failed to register with the CFTC as a futures commission merchant, and through at least the end of 2023 it failed to register with the U.S. Treasury Department's Financial Crimes Enforcement ...

Withdrawing on the Web

Log into your KuCoin account. From the navigation bar, select Assets → Overview → Withdraw to enter the withdrawal page. 2. From there, select the cryptocurrency you wish to withdraw from the dropdown (Example: USDT).

Yes, KuCoin is available for use in the United States with limited restrictions. KuCoin is a global digital asset exchange, so US citizens are welcome to sign up, deposit funds, trade crypto, and withdraw assets.

KuCoin is a cryptocurrency-only trading platform as of writing this guide and doesn't support crypto to fiat withdrawals.

The site's two founders, Chun Gan and Ke Tang, were charged with conspiring to operate an unlicensed money transmitting business and failing to maintain records under anti money laundering laws. While the service itself has not been taken down, it is no longer available within the US.

"Prominent Global Cryptocurrency Exchange KuCoin And Two of Its Founders Criminally Charged With Bank Secrecy Act and Unlicensed Money Transmission Offenses." Office of the New York State Attorney General. "Attorney General James Secures More Than $22 Million from Cryptocurrency Platform for Operating Illegally."

How do I buy crypto on KuCoin in USA? ›

Step 1: Sign in to KuCoin and go to Buy Crypto Fast Buy. Step 2: Select the type of crypto you want to buy and the fiat you want to pay with. Step 3: Select Bank Card as the payment method. Step 4: After you have selected the payment method, you will need to complete KYC Verification.

Yes, KuCoin is a legitimate cryptocurrency exchange that has been operating since 2017. It has built a reputation for providing a wide range of cryptocurrencies and advanced features.

KuCoin protects your account with multi-factor authentication, endpoint protection, and more. Keep your funds and wallets safe with multiple layers of protection, secure deposit and withdrawal processes, and top-tier wallet security controls.

No, this crypto exchange is not licensed in the USA and you cannot complete KYC verification. As a result, KuCoin US Customers can only access a limited version with low withdrawals and fewer features. Luckily, top KuCoin VPNs can help connect to other countries where these restrictions don't apply.

KuCoin's distinctiveness lies in its security and support of more than 700 altcoins, making it a comprehensive hub for Bitcoin investors and traders alike. The best part about KuCoin's hot wallet is that your funds are safe, guaranteed by a transparent Proof of Reserve pool.

However, KuCoin might still report your crypto transactions to your country's tax authority, like the IRS or HMRC. We highly recommend tracking and reporting all relevant crypto transactions on and off the exchange to prevent audits and fines.

NEW YORK – New York Attorney General Letitia James today secured more than $22 million from KuCoin, one of the largest cryptocurrency trading platforms, for failing to register as a securities and commodities broker-dealer and for falsely representing itself as a crypto exchange.

Yes. In the United States, your transactions on KuCoin and other platforms are subject to income and capital gains tax. If you've earned or disposed of crypto (ex. Sold or traded away cryptocurrency) during the year, you'll have a tax liability to report to the IRS.