KuCoin abandons Hong Kong’s license application amid intensified regulations

KuCoin’s Hong Kong arm, HKVAEX, abandoned its virtual asset trading platform (VASP) licensing efforts on 28 March amidst amplified regulatory clampdowns.

That comes as the exchange faces regulatory pressure from global authorities. The US DoJ charged the exchange for violating money laundering laws.

Some believe the trading platform could have abandoned the certification process for a comprehensive approach to complying with regulators in the future.

KuCoin may want to start the licensing process afresh, potentially after understanding HK's financial guidelines.

Alternatively, the latest clampdown by the United States watchdogs might have shifted KuCoin’s global stance.

The team may have expected Hong Kong regulators to reject their application amidst the US regulatory developments.

Crypto market’s vulnerability

While enthusiasts anticipate massive bull runs in 2024 as Bitcoin steadies above $70, scammers are capitalizing on the trends to fill their bags.

Prisma Finance has suspended services following Thursday’s (28 March) $12 million hack, whereas Shido Network lost nearly all its assets.

Meanwhile, the cryptocurrency space has seen amplified regulatory clampdowns in recent years. Watchdogs prioritize user safety by combating issues like money laundering and terrorist financing.

The US DoJ crackdown on KuCoin and the subsequent Hong Kong license withdrawal reflects the surging regulatory pressure crypto exchanges face.