KuCoin Targets Indirect Transfers to 17 Platforms Including HTX
KuCoin now screens indirect crypto transfers to 17 platforms, including HTX. Users face held transactions even without direct contact. The policy extends sanctions enforcement beyond direct counterparties.
KuCoin has expanded its sanctions screening to cover indirect crypto transfers to 17 platforms, including the Justin Sun-linked exchange HTX. The policy, announced in an Aug. 27 compliance notice, means users can face held or rejected transactions even when they do not transact directly to one of the listed entities.
The list includes HTX, EXMO, BitPapa, and 14 other platforms such as Shelbit and Aban Tether. KuCoin said it may screen the source of funds and the addresses involved, including intermediary service providers, for connections to the affected entities. Transactions attempted to these platforms may undergo enhanced review or trigger temporary wallet and account restrictions. Repeated or serious violations could lead to suspension or withdrawal of services, KuCoin said.
The controls align with recent US and European sanctions requirements, KuCoin said, but the policy's reach extends beyond direct counterparties. KuCoin has not disclosed how many transaction hops it traces or what level of on-chain attribution is sufficient to establish an indirect connection.
HTX is the most consequential name on the list by scale. Binance stopped processing transactions involving HTX and 10 other platforms from Aug. 23 as part of its own sanctions-compliance measures. That narrows the routes through which HTX-linked funds can move across major exchanges while HTX itself remains operational.
HTX continues to dispute the sanctions-related allegations and the corporate identity behind the designation. The EU regulation names "HTX (Huobi Global SA)," a label also used by KuCoin. HTX said in May that Huobi Global S.A. is distinct from the online HTX exchange. The exchange said it is pursuing legal and compliance discussions with authorities in the UK and EU. Some users report funds being frozen on third-party platforms, including Kraken. HTX said it has submitted materials relating to 17 Kraken user freeze cases to the courts and is working to reduce disruptions affecting customers.
HTX said it processed more than 100,000 deposit and withdrawal transactions over two days without identifying new cases of indiscriminate freezes. The exchange recently upgraded its wallet infrastructure and introduced a withdrawal-address rotation mechanism, describing the changes as a security measure intended to reduce disruption from third-party risk controls and on-chain labeling.
For users, funds linked to HTX or another listed provider can face restrictions before they reach KuCoin, depending on the transaction path and the intermediaries involved. The policy pushes sanctions enforcement beyond direct counterparties and deeper into transaction provenance. Exchanges now assess where funds originated and which services they touched along the way.
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