The Commodity Futures Trading Commission (CFTC) has taken action against Kucoin, a popular cryptocurrency exchange, for allegedly operating an illegal digital asset derivatives exchange. The CFTC has charged Kucoin with violating the Commodity Exchange Act by offering futures contracts and options on cryptocurrencies without proper registration.
According to the CFTC, Kucoin allowed users to trade digital asset derivatives without complying with the necessary regulatory requirements. The CFTC alleges that Kucoin failed to implement the required anti-money laundering and know-your-customer procedures, putting investors at risk.
