KuCoin cryptocurrency platform will accept uMINT, the tokenized version of UBS money market fund, as a suitable form of collateral.
In the world of cryptocurrency, two significant developments have caught the attention of investors and regulators alike. On one hand, KuCoin, a major cryptocurrency exchange, finds itself navigating a complex regulatory landscape, facing bans and restrictions in numerous countries. On the other hand, the UBS USD Money Market Investment Fund Token (uMINT) is making waves as it is being used as collateral for crypto derivatives trading.
KuCoin's Regulatory Woes
KuCoin, based in Seychelles, has been operating with limited regulatory approval and varying legal status across different countries. This has led to restrictions and warnings in several jurisdictions.
- Netherlands: KuCoin is not registered with the Dutch central bank and was declared to be operating illegally under anti-money laundering laws. The Dutch central bank stated that KuCoin is offering exchange services without compliance, effectively banning its operations in the country.
- France: KuCoin is also banned in France, reflecting similar regulatory concerns about compliance, though specific details were not outlined in the sources.
- United Kingdom: The UK's Financial Conduct Authority (FCA) added KuCoin to its warning list, indicating the exchange lacks regulatory approval to provide services in the UK.
- Singapore: KuCoin does not hold regulatory licenses and is among exchanges considered lightly regulated. It is effectively unavailable in Singapore, though the exchange is taking steps to improve compliance through partnerships with MAS-regulated custodians.
- Hong Kong: Similarly, KuCoin is unavailable in Hong Kong due to regulatory restrictions. Its partners there are regulated, but the exchange itself is not licensed within the region.
- China: KuCoin is also banned or not available in China due to strict crypto regulations.
In July 2025, KuCoin enhanced its compliance efforts through a partnership with BitGo Singapore, using an MAS-regulated custody solution offering asset segregation aimed at institutional users. This move is part of KuCoin’s ongoing efforts to align with regulatory standards, including pursuing licensing under the EU's upcoming MiCA framework.
Despite these efforts, KuCoin has faced regulatory enforcement, such as a permanent ban and fines in Ontario, Canada, and a guilty plea in the US to operating as an unlicensed money transmitter, leading to fines and market exit commitments.
uMINT: A Token for Crypto Derivatives Trading
In contrast to KuCoin's regulatory challenges, the UBS USD Money Market Investment Fund Token (uMINT) has been making strides in the crypto world. Launched on the Ethereum public blockchain by UBS Asset Management last November, uMINT has a modest issuance of just shy of $25 million.
DigiFT, the primary distributor of uMINT, always envisioned the token being used as collateral for crypto derivatives trading. In a significant move, DigiFT has entered into a deal with KuCoin, a major cryptocurrency exchange, to use uMINT as collateral for crypto derivatives trading.
To provide peace of mind to investors following the collapse of the FTX exchange, uMINT tokens will be held by custodians off exchange. DigiFT has formal relationships with several top custodians to ensure compliance and the locking of assets as collateral.
uMINT can only be exchanged between institutional token holders, with the allow list controlled by DigiFT. Both DigiFT and KuCoin are regulated in their respective locations, with DigiFT being regulated in both Singapore and Hong Kong.
As the crypto market continues to evolve, the story of KuCoin and uMINT serves as a reminder of the importance of regulatory compliance and the potential of blockchain-based assets in derivatives trading.
- In the face of KuCoin's regulatory challenges, the UBS USD Money Market Investment Fund Token (uMINT) has been making strides in the crypto world, envisioned by its distributor, DigiFT, to be used as collateral for crypto derivatives trading.
- Despite operating without comprehensive regulatory approval in several countries, KuCoin has made efforts to align with regulatory standards, such as partnering with BitGo Singapore for MAS-regulated custody solutions and pursuing licensing under the EU's upcoming MiCA framework.
- In a significant move, DigiFT, the primary distributor of uMINT, has entered into a deal with KuCoin to use uMINT as collateral for crypto derivatives trading, offering institutional token holders a collateral option.
- To ensure compliance and asset safety, uMINT tokens will be held by custodians off exchange, with DigiFT having formal relationships with top custodians.
- As the crypto market adapts to regulatory demands, the contrasting experiences of KuCoin and uMINT underscore the significance of regulatory compliance while illustrating the potential of blockchain-based assets in derivatives trading.
