This exchange company called “KuCoin” was founded in 2017 and is based in Victoria, Seychelles, and not in China. The Seychelles-based global leading cryptocurrency exchange company cuts across over 200 countries, been co owned by Johnny Lyu and Michael Gan; with the former being the Chief Executive Officer and the latter being the Chairman of KuGroup respectively.
On What Island is KuCoin’s Base; Victoria Seychelles Located?
Victoria is the capital of Seychelles Republic, and its located on the north eastern coast of Mahé island; which is the largest island in Seychelles. Victoria also happens to be the only port of the archipelago and the only town of any size in Seychelles.
What brought about China’s KuCoin Link Base?
Some research has it that KuCoin cryptocurrency exchange has its incipient stage from China, before they move to Hong Kong to access a more favorable regulatory climate.
Why did KuCoin removed Chinese Mainland Users from its Database?
Sometimes last year around September, KuCoin advises its Chinese users to move their assets elsewhere on or before December 2021 rounds off.
KuCoin did this to comply with the Chinese central banks new policies, after which it had examined its business processes in view of the new policies.
Hence, to ensure adequate security of customer assets, KuCoin urges customers to withdraw their assets before December 31st midnight, although online and telephonic assistance were offered to affected customers.
KuCoin did this because they’d always want to operate in compliance with every countrys laws and regulations; including this compliance to meet Chinas regulatory requirements, but at the same time protecting the rights and interests of its users.
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What’s the Story behind the Chinese Crackdown?
It was said that the crackdown primarily targeted centralized exchanges operations, and it was somewhat defined as China’s toughest measures against crypto in years. Late last year, Chinese authorities ordered a fresh crackdown on crypto mining and outlawed virtually all crypto trading activities; calling all digital currency activities illegal and vowing to crack down on the market. The move of course made the crypto market to experience a modest sell-off. The Peoples Bank of China on its website also reflects that services offering trading, order matching, token issuance and derivatives for virtual currencies are strictly prohibited. Overseas crypto exchanges providing services in mainland China are also illegal, as said.
Why the Tough Crackdown from Chinese Authorities?
From the view of things, China had given a virtual version of the Yuan a trial in several regions, and they’re tipped to be a leading contender in the race towards central bank-issued digital currencies. Besides, the Peoples Bank of China (PBOC) is as well working on its own digital currency.
Furthermore, the crypto crackdown comes as a result of the country’s peak carbon dioxide emissions target by 2030, coupled with the aim of becoming carbon neutral by 2060. With the country been the worlds biggest carbon emitter, it is said that crypto activities especially mining could be a threat to these plans, that was why policies like the crackdown were put in place.
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Conclusion
Even though some research has it that KuCoin started initially from China, fact still remains that the company is based in Victoria, Seychelles, and not in China. Besides, due to China’s plans and new crack down policies, KuCoin had been able to comply and restrain its Chinese users.