In a settlement with the State of New York, crypto exchange KuCoin has admitted that it operates a crypto trading platform that is effectively providing a service where users can buy or sell securities and commodities as defined by the State of New York. KuCoin is not registered as a broker-dealer of commodities broker in the state. The case was brought by New York AG Letitia James. KuCoin is based in the Seychelles (Mek Global Limited and Phoenixfin PTE Ltd DBA KuCoin)
The settlement requires that KuCoin cease offering services to citizens of New York. KuCoin will close the accounts of New York customers no later than 120 days after the Consent Order goes into effect.
The Order states that approximately $16.8 million worth of fiat and crypto was held by New York citizens which will be returned to the accountholders.
KuCoin will pay a $5.3 million penalty as part of the settlement.
Interestingly, the Order states that: “Peken Global Limited is the current owner and operator of the KuCoin platform, and that he has the authority to execute this Stipulation and Consent on behalf of KuCoin. Li Hang further represents that neither Mek Global Limited nor Phoenixfin Ltd. PTE currently own or operate the KuCoin platform.”
KuCoin is currently listed as the 5th largest crypto exchange in the world, according to CoinMarketCap. While based in Seychelles, KuCoin is said to have offices in Hong Kong and Singapore, with over 30 million users worldwide and a presence in over 200 countries.
If a US user visits KuCoin, you currently receive a message that, based on the IP address, they do not provide services.
The State of New York sued KuCoin this past March.