KuCoin BTC Reserves Plummet 77.6% After Mandatory KYC

Cryptocurrency exchange KuCoin experienced a significant drop in Bitcoin (BTC) reserves following the implementation of mandatory Know Your Customer (KYC) procedures in June 2023. An analysis from CryptoQuant and OnChainSchool revealed a staggering 77.6% decrease in holdings, highlighting the impact of KYC requirements on user behavior. The decline came shortly after the policy’s rollout, leading to concerns about liquidity and potential negative impacts on trading activity.