The cryptocurrency exchange KuCoin has lost more than 77% of its Bitcoin reserves following the announcement of a mandatory KYC procedure. This was reported by CryptoQuant.
Experts noted that from the first rumors of the introduction of KYC on June 5, 2023, to the official announcement on June 28, 2023, the exchange experienced a sharp decline in its Bitcoin reserves. Blockchain data indicates a drop from 18,300 BTC to only 4,100 BTC — a net outflow of 14,200 BTC, or a decrease of 77.6%, the report states.
"While the long-term decline of Bitcoin reserves on centralized exchanges is observed throughout the industry, the situation with KuCoin is exceptionally sharp. The timing and scale of this outflow are closely related to the implementation of the mandatory KYC procedure," analysts added.
However, the KuCoin team refuted this statement, noting that CryptoQuant's data is in fact incorrect and extremely misleading. KuCoin maintains strong reserves of the first cryptocurrency, and these figures do not reflect our actual assets, the platform's team emphasized.
