Summary
TLDR: KuCoin’s Hong Kong subsidiary withdrew its application for a VASP license amidst global regulatory scrutiny, including accusations of breaching money laundering regulations by the US Department of Justice. The exchange is considering ceasing operations and selling in 2023, facing investigations in China and a 58% decrease in ERC-20 token reserves. Regulatory challenges have prompted a strategic pivot in compliance efforts and a reassessment of global operational stance.
Key Points
1. KuCoin’s Hong Kong subsidiary, HKVAEX, withdrew its application for a virtual asset service provider (VASP) license.
2. This move reflects the intensifying regulatory scrutiny the cryptocurrency exchange faces globally, including accusations of breaching money laundering regulations by the United States Department of Justice (DoJ).
3. KuCoin’s reserves of ERC-20 tokens witnessed a dramatic 58% decrease following enforcement actions, emphasizing the exchange’s urgent need to navigate the evolving regulatory environment carefully.