Kucoin started off as an exchange and was doing just fine till the point where govt around the world decided to embrace crypto. Now govt wants everything under the regulation. Which means all those exchanges have to pay up to every nation govt where they operate. And now the dreams of such company CEOs are crushed that they would be burning money in exchange. 

Kucoin is having same issue like Binance, where they have to go for the compliance and also have to think of the legal trouble they have to get out of with all those fines. Recently they were questioned by CTFC for starting the option trading and futures trading with crypto. And now they are going to be paying fine with US department of justice. 

Kucoin has developed over the years because it offered low rates for the withdrawal. And also the amount of efforts that the consumers have done for building the brand of kucoin. But the way owners and the policies they handled kind of banned them from many nations for not complying. And other changes also happened like they had to deal with the local financial companies. 

Another blow was the futures and the options trading features which requires the trading license in every nation. And if not done things kind of go in the direction that would invite more scrutiny. And this means we have to think of the means for the exchange like this to comply. And not doing that attracted them to the CTFC and the USA's DOJ's charges. So now they are gong through variety of  those damages. 

Let's hope the exchange recovers out of that. You can see the CTFC action here.