KuCoin cryptocurrency change has denied claims that its BTC reserves have dropped since KYC rumors started on June 5, 2023, and the official announcement of the obligatory real-name system on June 28. In line with CryptoQuant’s Onchain College information, the change’s Bitcoin reserves have plummeted by 77.6%.
Though the general fall in reserves of centralized exchanges is an trade development, the sharp decline of KuCoin has attracted consideration. The analytics agency argued that it highlighted that customers are extremely delicate to privateness and compliance insurance policies.
KuCoin refutes claims of dropping over 77% of its BTC reserves
The info introduced is factually incorrect and extremely deceptive. KuCoin maintains sturdy BTC reserves, and these figures don’t mirror our precise holdings.
We’re deeply involved by the publication of such unverified claims and urge @cryptoquant_com to behave responsibly and…
— KuCoin (@kucoincom) Could 6, 2025
KuCoin, the world’s largest digital asset change, has seen a dramatic drop in its Bitcoin reserves since mid-2023 when it revealed Know Your Buyer (KYC) necessities. Onchain College acknowledged that KuCoin has seen a major 77.6% drop in its Bitcoin reserves since that interval.
The analytics firm famous that the change’s BTC reserves declined from 18,300 BTC to simply 4,100 BTC. The drop in reserves started after rumors of a KYC overhaul surfaced on June 5, 2023.
“The info introduced is factually incorrect and extremely deceptive. KuCoin maintains sturdy BTC reserves, and these figures don’t mirror our precise holdings.”
–KuCoin.
The digital asset change acknowledged that it was deeply involved by the publication of “such unverified claims.” KuCoin additionally urged CryptoQuant to behave responsibly and train higher diligence when sharing information which will influence market belief.
In line with the change’s official web site, it has a BTC Reserve Ratio of 106% on the time of publication. The crypto change additionally recorded its person property at roughly 9,751 BTC, whereas its pockets property at 10,306 BTC.
Onchain College exhibits a 77.6% lower in KuCoin’s BTC reserves
KuCoin loses over 77% of its BTC reserves following obligatory KYC announcement
“On-chain information exhibits a drop from 18,300 BTC to simply 4,100 BTC, marking a internet outflow of 14,200 BTC — a 77.6% lower.” – By @onchainschool pic.twitter.com/DCnjEHbTdv
— CryptoQuant.com (@cryptoquant_com) Could 5, 2025
CryptoQuant argued that the outflows elevated following the change’s official announcement on June 28, confirming that every one newly registered customers can be required to finish KYC verification on July 15. Onchain College argued that the outflow totaling over 14,000 BTC correlates intently with the timeline of KuCoin’s announcement to tighten its KYC procedures.
KuCoin’s case stands out for its pace and scale regardless of declining change reserves being a broader development within the trade. Onchain College argued that the timing and magnitude of this outflow strongly correlated with the enforcement of KYC. The analytics firm additionally added that the change highlights how customers are affected by compliance-related adjustments, particularly when privateness is perceived to be in danger.
Supply: CryptoQuant. KuCoin’s Bitcoin Trade Reserve.
KuCoin maintained that current customers should additionally full KYC to entry key companies, together with new deposits. The change’s customers nonetheless retained restricted entry to options like withdrawals and redemptions on staking merchandise.
The change’s KYC improve was a part of its efforts to align with world anti-money laundering (AML) practices. KuCoin cited anti-money laundering obligations and world compliance requirements as causes for the shift.
Elevated authorized stress within the U.S. was additionally the trigger behind this coverage change. In 2024, the U.S. The Legal professional’s Workplace stated that the change and its dad or mum firm, PEKEN GLOBAL LIMITED, had violated U.S. anti-money laundering and KYC laws.
U.S. Legal professional Danielle R. Sasson alleged that KuCoin did not register as a cash service enterprise with FinCEN and intentionally averted implementing fundamental AML laws. The indictment famous that the change allowed billions of {dollars} in suspicious transactions to cross by means of its platform.
The indictment additionally alleged that the change had no significant KYC or AML program in place for years regardless of serving over 1.5 million U.S. prospects and gathering greater than $184 million in charges since 2017.
The change said that because of the restrictive surroundings of world regulation and anti-money laundering practices, “KuCoin goes to conduct obligatory KYC.” The change agreed to pay a $297 million fantastic as a part of a settlement and exit the U.S. marketplace for at the least two years.
The change famous that KYC for dealer sub-accounts have to be submitted by means of its API, as there is no such thing as a internet interface. KuCoin added that customers are required to confirm solely as soon as per account and that common sub-accounts created beneath a grasp account stay unaffected by the KYC rule.
