KuCoin to shut in New York, pay $22 million to settle lawsuit

[zasad@]

https://www.reuters.com/legal/crypto-exchange-kucoin-shut-new-york-pay-22-mln-settle-lawsuit-2023-12-12/
"NEW YORK, Dec 12 (Reuters) - KuCoin, one of the world's largest cryptocurrency exchanges, has agreed to block New York users from its platform and pay $22 million to settle a lawsuit brought by the state as part of its push to rein in digital assets companies.

Attorney General Letitia James sued Seychelles-based KuCoin in March, accusing the platform of failing to register with the state before letting investors buy and sell cryptocurrencies on its platform.

"Crypto companies should understand that they must play by the same rules as other financial institutions," James said in a statement on Tuesday."

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[Charles-Tim]

Similar thread is already existing: Kucoin shut in New york Sued 22 million

[dansus021]

So basically kucoin doesn't have a license to operate in the US and agrees to pay I mean this is the fastest way when you dealing with the SEC right? I don't know what exchange gonna be hit next after Kucoin it just kinda crazy for an exchange to deal with Uncle SAM.

The best idea right now for all exchanges is to not accept US citizen until they have license to operate there.

[zasad@]

So basically kucoin doesn't have a license to operate in the US and agrees to pay I mean this is the fastest way when you dealing with the SEC right? I don't know what exchange gonna be hit next after Kucoin it just kinda crazy for an exchange to deal with Uncle SAM.

The best idea right now for all exchanges is to not accept US citizen until they have license to operate there.

I think that in the USA there are no longer any large crypto exchanges that can be fined a large amount. Coinbase has gotten rid of all major competitors and, thanks to the support of Blackrock and a good lobby, will occupy the bulk of the market. That’s why FTX in the USA still has problems

[dansus021]

I think that in the USA there are no longer any large crypto exchanges that can be fined a large amount. Coinbase has gotten rid of all major competitors and, thanks to the support of Blackrock and a good lobby, will occupy the bulk of the market. That’s why FTX in the USA still has problems

But it is possible that the USA or SEC fined other centralized exchanges out there as long as they have US citizens that register on the platform. Ex. I do believe there is a lot of people that have money or are registered on a platform like OKX or Bybit right?

Yeah, most of the ETF applications right now including the BlackRock choose Coinbase as the main platform to deal with Bitcoin and the Ethereum, no space for others at least for now. 

[zasad@]

I think that in the USA there are no longer any large crypto exchanges that can be fined a large amount. Coinbase has gotten rid of all major competitors and, thanks to the support of Blackrock and a good lobby, will occupy the bulk of the market. That’s why FTX in the USA still has problems

But it is possible that the USA or SEC fined other centralized exchanges out there as long as they have US citizens that register on the platform. Ex. I do believe there is a lot of people that have money or are registered on a platform like OKX or Bybit right?

Yeah, most of the ETF applications right now including the BlackRock choose Coinbase as the main platform to deal with Bitcoin and the Ethereum, no space for others at least for now.  

I do not use KYC Level Exchanges.
I use some of the exchanges on this list, but with great caution.
https://web.archive.org/web/20231108171939/https://bitcointalk.org/index.php?topic=5461917.0

Lawyers I know gave me several American exchanges that will also fight for a place in the sun. There is no room for FTX there.
https://www.coincall.com/
https://www.m2.com/
The US market will be occupied by serious companies and not smart-ass businessmen from Asia.

[Fiatless]

The US market will be occupied by serious companies and not smart-ass businessmen from Asia.

The clampdown on exchanges through strict regulation in the US will clean the market to a large extent but it also have some disadvantage. The US market is the biggest crypto market in the world but some competitors are making flexible policies to attract more crypto investors. Singapore and Hong Kong are offering some of the most clear and flexible regulations that create an enabling environment for crypto firms. We might see more digital asset businesses leaving the US and moving to more friendly countries in the Asia Pacific region.

If Coinbase becomes the only major exchange in the US, it will enjoy a monopoly and other businesses will suffer. This will give the US crypto community fewer options which is not a good feature of the free market the US claims it is. Other exchanges should be allowed to operate to make the market more competitive.