As I tried to explain earlier making a deposit, followed by a withdraw, can be seen as a mixing attempt, which is a money laundering indication. That doesn't mean that OP is involved in illegal activities, trying to launder money etc. but it COULD be the case. The fact that it COULD be the case is enough reason, according to AML/CFT policies, for exchanges/financial services to ask for KYC/additional information or even report the transaction to local authorities. I'm not trying to justify or defend these policies, I'm merely trying to explain how they work. The exchanges are simply obliged to follow these policies, otherwise they're not allowed to operate.
So admittedly you don't know for sure that KuCoin would report a deposit/withdrawal as "suspicious" to the authorities and that assertion is 100% based on your own speculation.
Sorry but I get the feeling you simply don't know what you're talking about and frankly I don't understand why you commented here in the first place.
KuCoin doesn't require KYC unless a user wants to withdraw 5 or more BTC worth of coins per day
or they feel "suspicious activity" has taken place on the part of the user. What "suspicious activity" constitutes is totally up to them.
according to AML/CFT policies
Says nothing about what you are talking about -- at this still early stage in the game, how an exchange interprets an individual country's AML policies is purely up to the exchange. There is no standard in this regard.
If an exchange is too heavy handed with springing KYC upon people and with-holding their coins unjustly then its our duty to warn other potential users not to use said exchange. In kaefergeneral's case, there is absolutely no reason for them to with-hold his funds and just because their terms & conditions says they can doesn't mean they won't soon have a negative reputation among the crypto community.
The reason why its interesting to me is because I've been a KuCoin user for years and never had a KYC request. But now I have to consider the prospect of steering people away from them.
Why is it interesting to you?
I never stated that KuCoin was/is contacting local authorities, I said that I wouldn't be surprised if that was the case.
It's not just about AML policies from individual countries, these policies are globally used. KuCoin is based in Singapore, who happen to be a member of
FATF (Financial Action Task Force). This is taken from FATF's latest recommendation:
Financial institutions should be required to undertake customer due diligence (CDD)
measures when:
(i) establishing business relations;
(ii) carrying out occasional transactions: (i) above the applicable designated threshold
(USD/EUR 15,000); or (ii) that are wire transfers in the circumstances covered by the
Interpretive Note to Recommendation 16;
(iii) there is a suspicion of money laundering or terrorist financing; or
(iv) the financial institution has doubts about the veracity or adequacy of previously
obtained customer identification data.
The principle that financial institutions should conduct CDD should be set out in law. Each
country may determine how it imposes specific CDD obligations, either through law or
enforceable means.
The CDD measures to be taken are as follows:
(a) Identifying the customer and verifying that customers identity using reliable,
independent source documents, data or information.
(b) Identifying the beneficial owner, and taking reasonable measures to verify the identity
of the beneficial owner, such that the financial institution is satisfied that it knows who
the beneficial owner is. For legal persons and arrangements this should include
financial institutions understanding the ownership and control structure of the
customer.
====================
20. Reporting of suspicious transactions *
If a financial institution suspects or has reasonable grounds to suspect that funds are the
proceeds of a criminal activity, or are related to terrorist financing, it should be required, by
law, to report promptly its suspicions to the financial intelligence unit (FIU).
Exchanges will not take the risk of under-interpreting money laundering signals because that could result in the loss of their licenses.
I am replying to this thread to help OP understand why they KuCoin could be doing this. For the third and final time, I'm not saying I agree with FATF or other AML/CFT policies like AMLD5 nor am I trying to justify them. Saying that I do not know what I'm talking about seems a bit out of place for obvious reasons. There is plenty of documentation available online about FATF, US, EU and Asian policies, including examples of what kind of behavior can be seen as suspicious.