Sometimes companies get so much ego that it takes god to take them down. And when that does happen, the company and the people behind continue to make mistakes that begins their downward spiral. Such type of things happened with binance in past and now Kucoin is the one at the beating end.
Kucoin has been getting a lot of legal hassle lately. Be it blocking in asian nations or getting the DOJ, USA handing them some sort of the charges that would make it harder for them to recover amid all the drama that is out there.
Let's talk about kucoin and it's series of legal events and how they are affecting them as well as their consumers.
Kucoin's Journey from Ban to Compliance
Kucoin had some of the issues in the compliance and they were being asked to comply or else they would be getting blocked. India warned once and then next they banned them. And many other nations are in the same process. The reason being the company needs to be compliant with other nations too. Which is where the problem lies.
After debates and the issues, kucoin finally complied with the India, however govt has yet to unblock them. Now that they have unblocked from the other nations they need to wait for the india because they have a lot of things to settle over as well. Kucoin would be complying with other nations as they are trying to establish the business.
Department of Justice and CTFC charges
CTFC is the component of the govt that keeps an eye on the future and the options market. And that market is governed regardless of where you have the company and the thing is that as long as you are working with US consumers then CTFC would charge you. And then the case goes to the DOJ in USA and they too have casued the KuCoin to be getting legal notice and charges.
This has caused a storm in their customer base and they are starting to withdraw their tokens out of the exchange. And they have now 200 M worth of the withdrawal is going on as of now. And unless they have the new good investmnet coming this is a massive damage if you ask me. Meanwhile you can keep tab on their CTFC's charges and the case here.
Apple Store drops Kucoin
When things go wrong then life goes wrong and the series of the events that are going wrong continue to increase. Apple had to drop the kucoin for the indian users in the app store. So the app is only available to other users till the ban stays. So they would not be able to get new accounts and existing account struggle with withdrawals too.
In short the Kucoin seems like in the series of the unfortunate events and the legal downfall just does not stop. And that would only make the exchange would be struggling unless external events or funding changes them. Most likely the kucoin is in turmoil right now and not worth keeping your hard earned crypto as of now. So be very careful with storing your crypto there. You can read about the AML case of the kucoin here.
Kucoin is suffering with the legal cases and the amount of events that are affecting the consumers and the investors has been making the condition worst. Let's hope they sort everything out and get to business as usual.
Posted Using InLeo Alpha