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KuCoin expands sanctions screening to indirect transfers across 17 platforms
The exchange says users can face held or rejected transactions, with temporary wallet and account restrictions for attempts tied to the listed platforms.
KuCoin has expanded sanctions screening to cover indirect crypto transfers connected to 17 sanctioned or restricted platforms, meaning users may see transaction holds or rejections even if they never sent funds directly to those entities, according to CryptoSlate. The compliance notice, dated Aug. 27, lists platforms covered by the restrictions including Shelbit, Aban Tether, A7 Nigeria, A7 Africa, PilotFinance, Rapira, Aifory Pro, ABCeX, WhiteBird, NoOnecrypto, Tradex, Monease, BitPapa, Exnode, Exnode Pay, EXMO, and “HTX (Huobi Global SA),” per the report.
KuCoin said it may screen multiple points of a transfer, including the source of funds, originating and destination addresses, and intermediary service providers, for connections to the covered entities. Transactions attempted to these platforms could undergo enhanced review or trigger temporary wallet and account restrictions, and KuCoin warned that repeated or serious violations could lead to suspension or withdrawal of its services for the user.
CryptoSlate also notes that HTX is the most consequential name on KuCoin’s list due to its scale, and that Binance stopped processing transactions involving HTX and 10 other platforms from Aug. 23 as part of its own sanctions compliance efforts. HTX disputed the sanctions-related allegations and the corporate identity behind the designation, saying Huobi Global S.A. is distinct from the online HTX exchange, while the report says HTX is pursuing legal and compliance discussions and has submitted materials relating to Kraken user freeze cases to the courts. It adds that HTX’s head of markets said it processed more than 100,000 deposit and withdrawal transactions over two days without identifying new cases of indiscriminate freezes, and that HTX upgraded its wallet infrastructure.