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KuCoin’s admission of guilt on January 27, 2025, for running an unlicensed money-transmitting business marks a pivotal moment in U.S. crypto enforcement. The DOJ found the exchange ignored anti-money laundering (AML) rules, skipped customer checks, and failed to report suspicious activity, resulting in a $300 million settlement. Co-founders Chun Gan and Ke Tang avoided personal charges through deferred prosecution deals.
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The case, stemming from a March 2024 indictment, accused KuCoin of evading U.S. laws by downplaying its American user base. Regulators likened its negligence to past actions against Binance, emphasizing that lax compliance won’t be tolerated.
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This crackdown underscores a non-negotiable truth: crypto platforms must prioritize regulation or face collapse. Contrast this with for example CEXs like, Bitget, which saw its user base surge from 20 million to 100 million by embedding compliance in over 100+ countries; with $300 million protection fund, adhering to EU MiCa rules, securing ISO certifications, and following FCA guidelines.
KuCoin’s downfall isn’t just a legal failure, it’s a wake-up call. In an industry battling skepticism, exchanges that marry innovation with accountability, aren’t just surviving, they’re defining crypto’s future.
https://www.cryptonewsz.com/kucoin-pleads-guilty-unlicensed-money-business/