KuCoin BTC reserves collapse 77% as 14k coins flee, liquidity squeeze looms

KuCoin’s Bitcoin reserves plummeted from 18,300 BTC to 4,100 BTC within three weeks of announcing KYC requirements. The mass withdrawal was prompted by user sensitivity to compliance changes.

The swift decline in reserves showcases the balance exchanges must maintain between adhering to regulatory standards and retaining users. This situation raises alarms about KuCoin’s operational stability in a tightening global AML framework.

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