KuCoin addresses user concerns over data sharing with the Indian government post-re-entry into the Indian crypto market.
Following the practical completion of Financial Intelligence Unit (FIU) registration in India, the well-known cryptocurrency exchange KuCoin was accused of violating user privacy.
It, therefore, issued a statement to dispel any confusion among its users. KuCoin dispelled the rumor that it had compromised user information in order to obtain FIU registration.
Anger arose following KuCoin’s declaration of reentering the Indian market, during which it emphasized its adherence to India’s (FIU) regulations.
Additionally, the exchange announced on X that its trading application is now accessible in India via the Google Play Store and Apple App Store. A user responded to the announcement by asking, “Did you share previous user information with the GOI to obtain FIU registration?
A KuCoin moderator replied, “We place a high value on protecting the privacy and security of our users’ assets.” In response to inquiries regarding data sharing, KuCoin further assured users that it functions as a lawful offshore global exchange.
Further, it reaffirmed its dedication to assisting in collecting judicial evidence in rigorous adherence to pertinent laws, regulations, and international protocols. The exchange’s commitment to upholding rigorous international standards and requirements was emphasized in the statement.
The KuCoin exchange’s reassurance stems from the increasing international scrutiny of CEXs. Furthermore, as time passes, regulatory bodies emphasize data privacy and compliance.
Moreover, India harshly regulates cryptocurrencies, and disclosing sensitive user information could exacerbate the situation. Such speculations are therefore warranted.
Although the KuCoin response may allay some apprehensions, the subsequent reactions of users and regulators are yet to be determined. Moreover, the exchange’s inability to provide a definitive response has generated user discontent.
Struggle In The US After DoJ Charges
Although KuCoin accomplished a significant milestone in the Indian market, it is currently facing heightened scrutiny in the United States due to charges filed against it by the Department of Justice.
KuCoin’s Bitcoin (BTC) reserves experienced a substantial decline in March, falling by over 25% in comparison to the preceding month. The current significant decrease can be ascribed to the recent legal examination.
According to the cryptocurrency exchange’s most recent asset reserve report, BTC holdings decreased by 25.4% from 16,240 BTC in February to 12,114 BTC. Similarly, Ethereum (ETH) assets decreased by 21.91% from 114,405 ETH in February to 112,763 ETH.
Furthermore, the USDT reserves of the exchange were severely depleted, falling by 21.5% to 963 million. Moreover, the USDC reserve significantly declined by 33.62%, ultimately contracting to 39.34 million. KuCoin is in hot water due to accumulating allegations from the DoJ and a lawsuit from the CFTC concerning its Ethereum margin trading activities.
The exchange and its co-founders, Chun Gan and Ke Tang, are accused of, among other things, violating the Bank Secrecy Act and anti-money laundering regulations.
According to the allegations, KuCoin, Gan, and Tang allegedly conspired to violate financial regulations and operate an unauthorized money-transmitting enterprise. Even with its initial surge in growth, KuCoin is presently confronted with a significant withdrawal of traders from its platform.
