KuCoin has implemented a strict compliance policy that allows the exchange to block transactions or suspend accounts even if a user has never directly interacted with a sanctioned entity. The exchange monitors the flow of funds through intermediaries; if a transaction chain involves any of 17 specifically sanctioned platforms, KuCoin’s system may trigger a review. This proactive stance is designed to prevent money laundering and ensure the platform does not inadvertently facilitate the movement of 'tainted' crypto assets.
Why is KuCoin blocking accounts for indirect links to sanctioned crypto platforms?
KuCoin is now monitoring transaction histories to identify funds that have passed through any of 17 sanctioned platforms, even if the user was not the direct sender. This policy means that using intermediaries connected to prohibited entities can trigger manual reviews, transaction rejections, or total account suspension.
