Elite Law Firm Joins KuCoin in Defense of DOJ and CFTC
KuCoin collaborates with multinational law firm A&O Shearman to Resolves lawsuits filed by the U.S. Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC)..
Cryptocurrency exchange Proactively communicate with these regulators to solve the problem.
KuCoin CEO Johnny Lyu is reportedly hopeful about this participation and has pointed out the shortcomings of cryptocurrency exchanges. Efforts to enhance security and compliance.
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Last March, the CFTC KuCoin was accused of trading illegal goods. It alleges that the platform engages in over-the-counter futures and leveraged retail product trading without proper registration. The CFTC further argued: By enabling trading of Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC), KuCoin falls under the regulatory scope of the CFTC.
The CFTC is seeking the following penalties: clawback, civil fine, permanent trading and registration ban.
Commissioner for Enforcement Ian McGinley said:
For too long, some offshore cryptocurrency exchanges have followed a now-familiar playbook by offering derivatives and falsely claiming that Americans can’t use their platforms. In reality, anyone in the United States using commonly available technologies can trade without providing a primary customer base. Identification Information.
The DOJ subsequently brought charges against KuCoin and its two co-founders. Violation of the Bank Secrecy Act. DOJ is a cryptocurrency exchange Failure to enforce anti-money laundering (AML) policies. Over $4 billion in illicit funds were transferred.
Also they say KuCoin’s Inadequate know-your-customer (KYC) procedures From July 2019 to June 2023, customers were allowed to trade without authentication. Even though KuCoin introduced the KYC system in 2018, it did not enforce it, and prosecutors argue that this contributed to KuCoin’s growth.
Nonetheless, Lyu believes that with the help of A&O Shearman, a solution can be achieved that is beneficial to all stakeholders.
Decentralized exchange Uniswap is also facing legal challenges from US authorities. Recently, Uniswap formally responded to the Wells notice from the U.S. Securities and Exchange Commission (SEC), disputing the claim that it acts as an unregistered stock exchange.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
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