The Kucoin CryptoCurrency Exchange has denied claims that the BTC reserves have dropped since KYC rumors began on June 5, 2023, and the official announcement of the mandatory real-Name system on June 28. According to Cryptoquant School data, the Bitcoin reserves of the exchange of 77.6%replacement Bitcoin.
Although the general fall in reserves of centralized exchanges is a trend in the industry, Kucoin's sharp decline is attracting attention. The analytics firm has argued that it has shown that users are highly sensitive to privacy and compliance policies.
Kucoin rejects the claims of loss of more than 77% of its BTC reserves
The data presented is false and highly misleading. Kucoin maintains a strong BTC reserve, and these figures do not reflect our actual handling.
We are very concerned by the publication of such unspecified claims and urges @crypoquant_com to act responsible and…
– Kucoin (@kucoincom) May 6, 2025
Kucoin, the world's largest digital asset exchange, has seen a dramatic collapse in Bitcoin reserves since mid -2023 when it revealed the requirements to your customer (KYC). The Onchain School has acknowledged that Kucoin has seen a significant 77.6% collapse in Bitcoin reserves since the time.
The Analytics company noted that the BTC reserve of exchange declined from 18,300 BTC to only 4,100 BTCs. The collapse of the reserves began after the rumors of a KYC overhaul that -Surf on June 5, 2023.
“The data shown is false and highly misleading. Kucoin maintains a strong BTC reserve, and these figures do not reflect our actual handling.”
–Kucoin.
The Virtual Asset Exchange recognized that it was very concerned with the publication of “Such an unspecified claim.” Kucoin also urged the cryptoquant to act responsible and use greater diligence when sharing data that could affect market confidence.
According to the official exchange website, it has a ratio of the BTC reserve of 106% at the time of publication. The crypto exchange too recorded Its users' assets are approximately 9,751 BTC, while its purse owners are 10,306 BTC.
The Onchain school shows a 77.6% drop in Kucoin's BTC reserves
Kucoin defeated more than 77% of BTC reserves following KYC's ordered announcements
“On-chain data shows a collapse from 18,300 BTC to 4,100 BTC, marked a net flow of 14,200 BTC-a 77.6% decrease.” – ni @onchainchool pic.twitter.com/dcnjehbtdv
– Cryptoquant.com (@crypoquant_com) May 5, 2025
Cryptoquant argued that the outflows were increased following the official announcement of the Exchange on June 28, confirming that all new registered users were required to complete KYC verification on July 15. Onchain School argued that flowing over 14,000 BTC was linked closely to Kucoin's announcement of Kucoin KYC.
Kucoin's case stands for its speed and size despite the refusal of reserves to exchange as a broader industry. The Onchain school has argued that the timing and greatness of this flow is strongly linked to the implementation of KYC. The Analytics company also added that changes in the change of how users are affected by compliance -related changes, especially if privacy is noted at risk.
Kucoin maintains that existing users must also complete KYC to access basic services, including new deposits. Exchange users still maintain limited access to features such as backward and redeeming staking products.
KYC upgrading the exchange is part of its efforts to align with the Global Anti-Money Laundering (AML) practices. Kucoin cited anti-money laundering obligations and global standards in compliance with reasons for transfer.
Increasing legal pressure in the US is also the reason behind this policy change. In 2024, the US said that the lawyer's office was the exchange and company of its parent, Paken Global Limited, violated US anti-money laundering and KYC regulation.
US attorney Danielle R. Sasson has accused Kucoin's failed to register as a monetary service business with Fincen and intentionally avoid implementing major AML regulations. The accusation noted that the exchange allowed billions -billions of dollars to the weakening transactions to pass its platform.
The accusation also accused the exchange of no significant KYC or AML program in the area for many years despite delivering more than 1.5 million US customers and collecting more than $ 184 million on fees since 2017.
The exchange states that due to the restriction environment of global regulation and anti-pera laundering skills, “Kucoin will conduct a KYC ordered.” The exchange is to pay a $ 297 million fine as part of a regulating and exit the US market for at least two years.
The exchange noted that KYC for broker sub-accounts should be submitted by its API, as there is no web interface. Kucoin added that users are required to verify only once in each account and the regular sub-accounts created under a master account will remain unaffected by the KYC rule.
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