The settlement between cryptocurrency exchange KuCoin and the CFTC is expected to face delays due to policy changes by the Commission. Reasons for this delay include allegations of law violations.
Delay Due to Policy Change
The planned settlement of KuCoin with the CFTC is facing delays associated with a shift in the Commission's policy. The new stance places less emphasis on cases involving crypto firms, prompting CFTC attorney John Murphy to seek additional time to finalize the agreement initiated during the Biden administration.
Allegations Against KuCoin
The CFTC accused KuCoin of numerous violations of the Commodity Exchange Act and anti-money laundering laws. The Department of Justice has also charged the platform and its two founders with accumulating over $5 billion and transferring more than $4 billion in suspicious and criminal funds. KuCoin agreed not to participate in the U.S. market for two years following a $297 million settlement with the DOJ.
Outcomes and Potential Consequences
Although KuCoin and the CFTC notified the court of their settlement agreement in December, the terms of this agreement remain undisclosed. The exchange's request for a 14-day stay to negotiate further was denied by the judge, who mandated regular updates on negotiation status. This could prolong the process and complicate KuCoin's position in the market.
The delay in KuCoin's settlement with the CFTC highlights the increased scrutiny facing cryptocurrency companies amid changing regulations, emphasizing the importance of legal compliance in the financial sector.
