The post Shocking: KuCoin BTC Reserves Plummet 77.6% After Mandatory KYC appeared on BitcoinEthereumNews.com.

In the ever-evolving world of cryptocurrency, significant shifts can occur rapidly, often triggered by regulatory changes. A recent analysis highlights a dramatic example of this: cryptocurrency exchange KuCoin experienced a staggering 77.6% decline in its Bitcoin (BTC) reserves following the implementation of mandatory Know Your Customer (KYC) procedures in June 2023. Understanding the Dramatic Drop in KuCoin’s BTC Reserves Data from CryptoQuant, analyzed by OnChainSchool, revealed the sharp decrease in KuCoin‘s BTC reserves. Before the mandatory KYC rollout, the exchange held approximately 18,300 Bitcoin. After the policy took effect, this figure plummeted to around 4,100 Bitcoin. This represents a loss of over 14,000 BTC in holdings directly tied to the period surrounding the regulatory change. The Numbers: From ~18,300 BTC down to ~4,100 BTC. The Timeline: The decline occurred after mandatory KYC was enforced in June 2023. The Source: Analysis based on CryptoQuant data by OnChainSchool. While centralized exchanges (CEXs) have generally seen a trend of declining Bitcoin balances as users increasingly opt for self-custody, the scale of the outflow from KuCoin is particularly noteworthy. The analyst described this specific case as “extreme,” suggesting it goes beyond the typical market movement. Why Mandatory KYC Sparked Outflows from the Crypto Exchange KYC procedures require users to verify their identity by providing personal documents. These measures are typically implemented by a crypto exchange to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. While crucial for regulatory adherence and fostering trust with traditional financial systems, KYC is often viewed with skepticism by a segment of the crypto community that values privacy and anonymity. The significant outflow from KuCoin underscores a key challenge for any crypto exchange navigating the regulatory landscape: Privacy Concerns: Many early adopters and privacy-conscious users entered the crypto space specifically to avoid traditional financial surveillance. Mandatory KYC directly…

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Filed under: News - @ May 6, 2025 11:23 pm