KuCoin Leveraged Tokens Adds Six Trading Pairs Amid Heavy FUD

This week, Seychelles-based crypto exchange KuCoin expanded its trading pairs and ETF market. But can the exchange be trusted?

On Monday, one of the world’s largest cryptocurrency exchanges, KuCoin, launched six new trading pairs and expanded its ETF market. But so far this year, the exchange has garnered more attention for its drama in the courtroom.

Back on March 9, New York’s attorney general filed a lawsuit against KuCoin for allowing investors to trade cryptocurrencies on its platform without registering with the state, which violates the Martin Act. A law that prohibits the sale, purchase, and offer of securities and commodities by fraud or misrepresentation.

With the ongoing fear, uncertainty, and doubt (FUD), potential customers should think carefully about KuCoin.

KuCoin in Hot Water

According to the Attorney General’s office (AOG), KuCoin failed to register as a securities and commodities broker-dealer and falsely represented itself as an exchange. One important part of the case is the definition of ETH as a security. This case is one of the first instances of a regulator doing so.

Attorney General Letitia James alleged that KuCoin earned income for itself by selling “KuCoin Earn” and wrongfully calling itself an exchange. KuCoin Earn is the company’s service for generating passive income on financial products like staking and liquidity mining.

The lawsuit seeks a permanent injunction to prevent KuCoin from operating in New York until it complies with the law. The AOG is seeking a court order for KuCoin to implement geo-blocking based on IP addresses and GPS location to prevent access to its services in the jurisdiction.

KuCoin has faced this kind of scrutiny before. South Korean and Dutch regulators have accused the exchange of operating illegally without proper registration or a license. A charge that is becoming a running theme.

The Upside

For holders of KCS, KuCoin’s native token, 2023 has so far been a good year. Like the rest of the crypto market, KCS has generally trended upwards. With a notable dip when the New York Attorney General announced her lawsuit on March 9.

However, the past yea

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Author: Josh Adams

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