KuCoin Pays $297M Fine, Exits U.S. Over AML, KYC Violations

Cryptocurrency exchange KuCoin has reached a significant settlement with U.S. authorities, admitting to violations of anti-money laundering (AML) and know-your-customer (KYC) regulations. The exchange has agreed to pay a $297 million fine and exit the U.S. market for at least two years.

Founded in 2017, KuCoin has grown to become one of the top global cryptocurrency platforms, servicing over 30 million customers worldwide. However, the exchange failed to meet U.S. regulatory standards, allowing billions of dollars in suspicious transactions to be processed through its platform. These transactions were linked to illegal activities such as fraud, ransomware, and darknet market trades.

KuCoin's failure to register with FinCEN as a money transmitting business and its lack of adequate AML policies allowed criminal transactions to occur on its platform. The U.S. Attorney's Office has emphasized that this settlement sends a clear message to other exchanges: failure to comply with regulatory standards will result in severe consequences.

The settlement is a major step towards holding cryptocurrency platforms accountable for regulatory compliance. It serves as a warning to other exchanges that they must follow the laws designed to safeguard the financial system and prevent criminal activity in the crypto world.