KuCoin’s Hong Kong arm, HKVAEX, deserted its digital asset buying and selling platform (VASP) licensing efforts on 28 March amidst amplified regulatory clampdowns.
That comes because the change faces regulatory stress from international authorities. The US DoJ charged the change for violating cash laundering legal guidelines.
Some imagine the buying and selling platform may have deserted the certification course of for a complete method to complying with regulators sooner or later.
KuCoin could wish to begin the licensing course of afresh, probably after understanding HK’s monetary pointers.
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Alternatively, the newest clampdown by america watchdogs may need shifted KuCoin’s international stance.
The staff could have anticipated Hong Kong regulators to reject their utility amidst the US regulatory developments.
Crypto market’s vulnerability
Whereas fanatics anticipate huge bull runs in 2024 as Bitcoin steadies above $70, scammers are capitalizing on the tendencies to fill their luggage.
Prisma Finance has suspended services following Thursday’s (28 March) $12 million hack, whereas Shido Community misplaced practically all its belongings.
In the meantime, the cryptocurrency house has seen amplified regulatory clampdowns in recent times. Watchdogs prioritize consumer security by combating points like cash laundering and terrorist financing.
The US DoJ crackdown on KuCoin and the following Hong Kong license withdrawal displays the surging regulatory stress crypto exchanges face.
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