Bitcoin Forum

After Binance and other exchanges now Kucoin is also facing legal consequences for violations of regulations. News comes out from New York Reuters that Kucoin was running their exchange work without registering with state which results in ban of Kucoin exchange operations for new York citizens. Further more Kucoin have to pay Total 22 million in the lawsuit in which 16.7 million doller to investors and 5 million to state for violating the regulations.

This is very bad news for not only Kucoin exchange but also for newyork investors which are more than 177k. Centralized exchanges have to register now like other financial platform. What do you think this step will work to close the door of exchange scamming?

Full News: https://www.reuters.com/legal/crypto-exchange-kucoin-shut-new-york-pay-22-mln-settle-lawsuit-2023-12-12/

Many exchanges are having problems right now. The government wants to take a piece of the pie

The result is that these international crypto exchanges will leave the United States, and I do not think that the new platforms in the same way as the current one will be able to compete, as the door will be open to Kraken Coinbase and new ideas, which often combine cryptocurrencies and credit cards. Who remains on the list and I think they will soon switch to DEXs

From what i have understood from the whole law suit situation and fine that have been slammed on centralized cryptocurrency exchange is that, for some reason the government is right, because these exchanges are operating  as licensed exchanges reason why the collect KYC from their users how then will their not remit their taxes to the government when the time for that is due, the exchange operators should know better and if their want to avoid tax then there should go full DEX without any needs for a license or even taxation but then also it will come with its own challenges because operating a DEX is not as easy as operating a well taxed and regulatory compliance CEX because that way the government attack and forceful closer will be avoided but with DEX you can expect the government climbs them down anytime there be any sort of notice of their operations.

I'm curious about the response of US users as more and more top exchanges are sued, instead of the authorities wanting to protect them, instead they feel increasingly restricted in this business space.
Of the exchanges that I have used years ago, on average they don't have a US license and don't even serve US users even though the market potential is actually very good. Are the licensing requirements there that strict (or expensive)?

KuCoin does not have a license to operate in the United States. They have a international license from the Seychelles, and for a while they have been operating under it. at first they were not strict because it is small and it works in trading cryptocurrencies, not cash. they allow withdrawals under the money laundering limits, which are often 10k dollars, but I think that the mistake they made is that they did not ban members from the United States, so if they wanted to comply, they had to either obtain a license or leave the US market and pay the fine or settle.

At this rate, every exchange is going to be closed in New York except for Paypal, won't they.