MEXCKCS Plunged 18% This Week Amid Kucoin’s Regulatory Woes
Cryptocurrency exchange, Kucoin was in the controversial space this week after the United States Department of Justice charged the exchange and two of its founders.
Kucoin token KCS saw its value plummet with users making liquidations reducing its value. KCS is down 2.83% in the last 24 hours despite the rallying support shown by a cross-section of the community. This week Kucoin’s utility token has plummeted over 18% as the effect of the regulatory saga bites on the market. Trader sentiment weakened leading to a 52.92% drop in trading volumes.
KCS Take on Weekly Fires
At the time of writing, KCS trades at $11.88 with daily trading volumes at $4.1 million. This downtrend has wiped out a chunk of monthly gains sparked by the cryptocurrency bull cycle. Kucoin’s monthly rally now stands at 5.94% after showing strong signs of an upward momentum.
The recent upturn in the market sent crypto assets high as Bitcoin (BTC) pierced $70,000 and decentralized finance (DeFi) numbers jumped. Memecoin was not left out of the greens as the market capitalization spiked over 15% before facing a slight correction.
Lawsuit Tanks Kucoin’s Token
On March 26, the DOJ filed a lawsuit against the exchange and two founders alleging unlicensed money transmission offenses and a breach of the Bank Secrecy Act.
…for conspiring to operate an unlicensed money transmitting business and conspiring to violate the Bank Secrecy Act by willfully failing to maintain an adequate anti-money laundering (“AML”) program designed to prevent KuCoin from being used for money laundering and terrorist financing, failing to maintain reasonable procedures for verifying the identity of customers, and failing to file any suspicious activity reports.
On March 27 Kucoin announced a $10 million airdrop for its community with distribution around. BTC and KCS, its native token. Johnny Liu, the platform’s CEO disclosed the airdrop thanking the community in light of recent events. Since the fall of FTX, global authorities have ramped up efforts to scrutinize cryptocurrency firms in a bid to protect investors. Recently the ongoing case against the Securities and Exchange Commission and Coinbase was among weekly regulatory highlights in the market. Digital asset users continue to lament over the regulatory approach of United States authorities on the market.
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