Crypto.com partners with Triple-A to enable direct crypto payments

KuCoin Ups Compliance via Mandatory KYCKuCoin, the Seychelles-headquartered global cryptocurrency exchange, has unveiled plans to strengthen its Know Your Customer (KYC) system by introducing mandatory identity checks.In an official announcement on Wednesday, KuCoin stated that this upgrade aims to ensure compliance with global anti-money laundering (AML) regulations. Effective from July 15, KuCoin will require all new users to undergo KYC authentication as part of the registration process. Those who fail to complete the KYC process will be unable to access KuCoin’s wide range of products and services, according to the exchange.Photo by Markus Winkler on UnsplashExisting and new usersFurthermore, existing users who registered prior to July 15, 2023, will also be required to complete the KYC process to access certain features on KuCoin. Withdrawals will remain unaffected for these users. However, they will no longer be able to deposit new funds, the announcement outlines.Despite the introduction of mandatory KYC, KuCoin’s existing non-KYC users will still be able to utilize services such as spot trading sell orders, futures trading deleveraging, and margin trading deleveraging. Additionally, other available services for existing non-KYC users include redemptions at KuCoin’s staking and lending hub, KuCoin Earn, and exchange-traded funds’ redemption.Johnny Lyu, the CEO of KuCoin, explained the KYC process, stating: “A complete KYC process requires users to provide their name, identification number, and identification photo, and undergo facial recognition.” Lyu emphasized that KuCoin carefully verifies customer identification and collects the necessary data in compliance with the laws and regulations of applicable jurisdictions.He added: “Typically, we require customer identification information including information on the customer’s name and further identifiers such as a physical address, date of birth, and national ID number.”Risk profile data collectionIn accordance with regulatory requirements, KuCoin also collects additional information regarding a customer’s business and risk profile. This includes details about the nature and volume of trading activity and the origin of virtual funds deposited, according to Lyu.Lyu underscored that KYC has always been a principle adhered to by KuCoin and that identity recognition is an established part of its process. He further highlighted that KuCoin’s KYC policy is designed to align with regulations in applicable jurisdictions, as there is no unified global KYC regulation at present.KuCoin has also made it clear that the exchange does not support the United States KYC requirements based on their current or updated KYC rules. This new mandatory KYC update will impact a significant number of cryptocurrency users globally. As of July 2022, KuCoin reported over 20 million registered accounts on its platform.Leading global exchangeKuCoin is also recognized as one of the world’s largest cryptocurrency exchanges in terms of trading volumes. At the time of writing, KuCoin’s daily trading volumes exceed $540 million, with more than 8 million monthly visits, according to data from CoinGecko. For comparison, major United States-based exchange Kraken receives approximately 5 million visits per month, with a daily trading volume of around $380 million.This move by KuCoin follows a trend of increasing KYC policies among cryptocurrency exchanges. In May, Dubai-based Bybit restricted non-KYC users from withdrawing more than 20,000 Tether (USDT) monthly. It has been reported that cybercriminals have taken advantage of KYC requirements, selling hacked and verified crypto accounts on the darknet for as low as $30 as of April 2023.

SEC seeks summary judgment against Terraform LabsThe U.S. Securities and Exchange Commission (SEC) is making a strong push for a summary judgment in its ongoing legal battle against Singapore’s Terraform Labs and its co-founder Do Kwon. Such an outcome would spare the need for a protracted trial.According to a motion filed by the SEC on Thursday, the record shows that there is “no genuine dispute as to any material fact and that the moving party is entitled to judgment as a matter of law.”Photo by Caleb Fisher on UnsplashRelying on the Howey TestThe SEC’s filing underscores its central argument that Kwon and Terraform Labs were involved in the sale of securities. The document categorically states:“There is no dispute that purchasers made an investment of money, either through fiat currency or crypto assets, for each crypto asset — LUNA, wLUNA, MIR, and UST, thereby satisfying the first prong of Howey.” The Howey Test refers back to a U.S. Supreme Court case — SEC v. Howey — which took place in 1946. The case set a precedent and has subsequently become the cornerstone of determining what is or is not a security in the United States.This argument hinges on the idea that funds were pooled in a common enterprise with the expectation of profits primarily derived from the efforts of the promoters.Citing fraud as well as unregistered securitiesThe SEC’s assertion is two-fold, contending that not only did Terraform and Kwon engage in selling securities, but they also engaged in fraudulent activities and disseminated misleading information. The SEC reiterates these claims in its filing, emphasizing that the defendants committed fraud by duping investors about the stability of UST.They allegedly falsely attributed the algorithm for price stabilization while orchestrating clandestine third-party interventions. This purported deception made their claims regarding the algorithm’s effectiveness deceptive and involved the omission of crucial information. The fallout from Terra’s collapse in May of the previous year resulted in the destruction of substantial investor wealth, totaling billions of dollars.Similar defense team filingThe SEC’s move to seek summary judgment comes in the wake of a similar filing by Kwon’s defense team last Friday. Kwon is currently serving a sentence for document forgery in Montenegro, a situation stemming from his arrest at an airport with forged passports.Notably, Terraform’s co-founder, Daniel Shin, who is currently on trial in South Korea, has attributed the collapse of Terraform Labs to Kwon’s mismanagement. Shin has claimed his separation from the company and its activities occurred two years before its eventual collapse.In this legal battle that holds significant implications for the cryptocurrency and blockchain space, the SEC continues to emphasize its position, asserting that Kwon and Terraform Labs engaged in the sale of securities through deceptive means. The outcome of this case could have far-reaching consequences, setting precedents for future regulatory actions in the industry.

Korea’s Traditional Customer Rewards Program Embraces NFTsSouth Korean tech company SK Planet, the operator of the popular customer rewards program OK Cashbag, made an exciting announcement for points collectors today. In a recent press release, it revealed the launch of its new non-fungible token (NFT) membership program called “Road to Rich.”Photo by Markus Winkler on PexelsRewards program meets NFTsFor over two decades, OK Cashbag has been a beloved membership service for Korean consumers. Now, members can embark on a journey through the Road to Rich program, accompanied by a rabbit character NFT. By completing daily quests, participants will earn rewards such as OK Cashbag points. As they progress on their journey, users can even level up their character, with the ultimate goal of reaching level 5. At this pinnacle, users will receive a tradable TEM NFT, offering customized everyday benefits.Decentralized walletSK Planet, an affiliate of the South Korean conglomerate SK Group, has also introduced a new decentralized wallet called UPTN Station. Built on the Avalanche subnet, UPTN Station empowers users to store and transfer various digital assets, including NFTs. To enjoy the Road to Rich program, the installation of UPTN Station is required.Gaming and rewardsNotably, the Road to Rich program comprises two gaming episodes to further captivate its users and encourage active participation. Any OK Cashbag member aged 19 or older can partake in the first episode and mint their own rabbit NFT at no cost.Kim Kyo-soo, the head of SK Planet’s customer experience division, expressed enthusiasm about the NFT program, highlighting its ability to make Web3 experiences second nature for users. Moreover, he mentioned plans for future collaborations with SK Group affiliates and other partners, aiming to provide an extensive range of services.