KuCoin Denies Sharing User Data with Indian Gov

KuCoin, a major cryptocurrency exchange faced privacy concerns following its successful registration with the Financial Intelligence Unit.

KuCoin, a prominent cryptocurrency exchange in India, faced claims of violating user privacy immediately after successfully completing the Financial Intelligence Unit (FIU) registration process.

Therefore, to allay the concerns of its customers, it issued a statement. To meet the requirements for FIU registration, KuCoin addressed the rumors that it would share user data with the Indian government.

KuCoin Responds To User Concerns

When KuCoin announced its return to the Indian market and emphasized its compliance with India’s Financial Institutions and Units (FIU), the dispute began.

In addition, the exchange announced that its trading app is now accessible for download on the Google Play Store as well as the Apple App Store in India.

One of the users responded to the announcement by writing, “Did you guys share previous user data with the Government of India to obtain FIU registration?”

An administrator of KuCoin responded by saying, “We place a high priority on the protection of our users’ assets and privacy.” In response to their inquiries about data sharing, KuCoin assured its users that it operates as an offshore global exchange that complies with the law.

Furthermore, it reaffirmed its commitment to cooperating with the acquisition of judicial evidence in a manner that is strictly in conformity with international protocols as well as applicable laws and regulations.

Through this statement, the exchange reaffirmed its dedication to upholding stringent international norms and requirements. The KuCoin exchange’s assurances come at a time when CEXs around the world are under increasing scrutiny.

Furthermore, compliance and data privacy concerns are becoming an increasingly important priority for regulatory agencies. In addition, India is taking a hard stance against cryptocurrency, and the sharing of vital customer information might make the situation much more dire.

Furthermore, the exchange did not provide a specific solution, which is problematic for its users because it is unsatisfactory. Even though KuCoin has accomplished a great deal in the Indian market, it is currently facing heightened scrutiny in the United States as a result of the Department of Justice’s decision to press charges against it.

The amount of Bitcoin (BTC) reserves held by KuCoin experienced a precipitous decline in March, falling by more than 25 percent in comparison to the preceding period.

The new legal scrutiny has led to this significant drop. The most recent asset reserve report from the cryptocurrency exchange reveals that the bank’s Bitcoin holdings have decreased by 25.4%, going from 16,240 BTC in February to 12,114 BTC.

In a similar vein, the value of Ethereum (ETH) assets dropped to 112,763 ETH, which is a decrease of 21.91% from February’s total of 114,405 ETH.

Additionally, the disaster significantly reduced the exchange’s USDT reserves, which fell by 21.5% to a total of 963 million. Furthermore, the USDC reserve experienced a significant decline of 33.62%, resulting in a decrease of 39.34 million.

KuCoin has found itself in a precarious situation as a result of the Department of Justice’s (DoJ) growing claims and the Commodity Futures Trading Commission’s (CFTC) lawsuit surrounding Bitcoin margin trading activities.

The accusations that have been brought against the exchange and its co-founders, Chun Gan and Ke Tang, allege that they have violated several laws and regulations, including those that prohibit money laundering and the Bank Secrecy Act.

According to the allegations, KuCoin, Gan and Tang were involved in the operation of a money-transmitting firm that did not have a license and conspired to violate financial regulations.

KuCoin is currently dealing with a significant number of traders leaving its platform, even though it first saw growth at a quick pace.