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KuCoin Responds To Rumors Of Sharing User Data With Indian Gov – Crypto News

Published

1 year ago

April 5, 2024

Dripp

After completing successful Financial Intelligence Unit (FIU) registration in India, KuCoin, a popular crypto exchange, was slammed with allegations of compromising user privacy. Hence, it issued a statement to clear doubts of its users. KuCoin addressed the rumors of sharing user data with the Government of India to attain FIU registration.

KuCoin Responds To User Concerns

The controversy ignited when KuCoin announced its return to the Indian market, emphasizing its compliance with India’s (FIU). Moreover, the exchange took to X and announced that its trading app is now available on the Google Play Store and Apple App Store in India. Responding to the announcement, a user wrote, “Did you guys share past user data with GOI to get FIU registration?”

A KuCoin moderator responded, “We prioritize the security of our users’ assets and privacy.” In response to queries about data sharing, KuCoin also assured users that it operates as an offshore global exchange that is legally compliant.

Moreover, it reiterated being committed to cooperating with judicial evidence collection strictly in accordance with international procedures and relevant laws and regulations. The statement underscored the exchange’s commitment to maintaining strict international standards and requirements.

The reassurance from the KuCoin exchange comes amid growing scrutiny of CEXs globally. Moreover, regulators are increasingly focusing on compliance and data privacy issues. Furthermore, India is cracking down on crypto and sharing of crucial user data could make the situation worse. Hence, such speculations are justified.

While the response from KuCoin may relieve some concerns, it remains to be seen how users and regulators will react in the coming days. Furthermore, the exchange failed to provide a certain answer, which is dissatisfactory for its users.

Also Read: Binance Enhances Safety Standards Amid Regulatory Pressure

Struggle In The US After DoJ Charges

While KuCoin achieved a major feat in the Indian market, it is experiencing increased scrutiny in the US after the Department of Justice Pressed Charges against it. In March, KuCoin’s Bitcoin (BTC) reserves took a significant nosedive, plummeting by more than 25% compared to the previous month. This drastic decline is attributed to the recent legal scrutiny.

The crypto exchange’s latest asset reserve shows BTC holdings dropping to 12,114 from 16,240 BTC in February, marking a 25.4% decrease. Similarly, Ethereum (ETH) assets plunged to 112,763 ETH, a 21.91% decline from February’s 114,405 ETH.

Moreover, the exchange’s reserves of USDT suffered a significant blow, decreasing by 21.5% to 963 million. Additionally, the USDC reserve experienced a sharp downturn of 33.62%, falling to 39.34 million. Facing mounting allegations from the DoJ and a lawsuit from the CFTC regarding its Ethereum margin trading activities, KuCoin has found itself in hot water.

The charges leveled against the exchange and its co-founders, Chun Gan and Ke Tang, allege violations of anti-money laundering regulations and the Bank Secrecy Act, among others. The allegations indicate that KuCoin, Gan, and Tang were involved in operating an unlicensed money-transmitting business and conspiring to violate financial regulations. Despite the rapid growth initially, KuCoin is now grappling with a notable exodus of traders from its platform.

Also Read: Breaking: Coinbase Secures Canadian License Amidst US Regulatory Pressure