Is KuCoin Safe? A Detailed Security and Privacy Overview

KuCoin review: regulation, reach, and what this crypto exchange platform offers 

KuCoin website calls itself a one‑stop trading platform that serves more than 40 million KuCoin users in over 200  countries. Sounds good, right? But this is what KuCoin really looks like in real life: 

Global but unlicensed

KuCoin exchange is officially registered in Seychelles, which means it offers operating trading services without licenses from major regulators like the U.S. SEC or the EU authorities. This setup allows KuCoin to operate with fewer rules and keep trading fees relatively low. But speaking of KuCoin reliability, there is no official insurance or protection provided if something goes wrong, like crypto hacks or frozen accounts.

Long list of available coins

KuCoin offers a massive selection of trading options. You’ll find over 900 supported cryptocurrencies available for spot trading, plus 100× leverage for futures trading. Such diversity is often missed by other popular crypto exchanges. 

Reduced rate structure

KuCoin keeps its fees competitive. Standard KuCoin fees start at just 0.1%, and you can even reduce them to zero if you become a VIP or pay using KuCoin’s native token (KCS). Futures trading fees begin as low as 0.02% for makers and 0.06% for takers.

Staking and lending

With the KuCoin Earn and the KuCoin spotlight launchpad, users can stake or lend their crypto and potentially earn high APYs (annual percentage yields). These features might sound great, but keep in mind that your coins often get locked up for weeks — so you can’t pull them out anytime you want.

Solid gadget stack

KuCoin offers a lot of useful trading tools. There are built-in trading bots to automate your strategies, a polished KuCoin app for easy mobile use, and an API if you want to connect your own automated trading software. Both beginners and advanced traders will find something useful here.

Mandatory KYC for using

To use KuCoin now, you’ll need to complete the basic account verification  KYC (know your customer) procedure. It’s part of their compliance steps.

Weak support (according to real users) 

Many users claim KuCoin support to be slow, especially when they try to withdraw money from the exchange. 

Some KuCoin’s offerings are attractive, while some only leave much to be desired. But let’s have a look at some loud cases that throw shade on this crypto exchange platform. 

Red flags of KuCoin. The 2020 hack and fresh lawsuits

While KuCoin offers a feature-rich platform, its track record has raised a few serious concerns. These major incidents show why users still question how safe KuCoin really is:

Hack in September 2020 

In September 2020, KuCoin had a large crypto exchange hack. Cybercriminals stole about $275 million worth of user assets from the exchange’s hot wallets (the type of wallets connected to the Internet and more vulnerable to attacks). KuCoin froze suspicious transactions and worked with blockchain investigators to trace and recover stolen funds. According to their statement, most of the crypto was eventually recovered through KuCoin’s insurance fund.

Lawsuit by the US Department of Justice in March 2024

In March 2024, the U.S. Department of Justice filed a lawsuit against KuCoin. They accuse the company of operating an unlicensed money-transmitting business and failing to implement basic anti-money laundering (AML) controls. In other words, U.S. authorities accused KuCoin of letting users trade without proper identity checks and without complying with financial regulations meant to stop criminal activity.

Warning for securities law violation in Canada in June 2021

Canada’s Ontario Securities Commission (OSC) called out KuCoin for breaking securities laws. The platform was offering crypto trading to Ontario users without registering or following local rules. While other exchanges responded to the OSC’s request to comply, KuCoin stayed silent. That move raised red flags, with regulators warning that unregistered platforms put users at serious risk of losing their assets.

Warning from the Central Bank of the Netherlands in December 2022

The Dutch central bank (DNB) accused KuCoin for operating in the country without permission. Basically, KuCoin was letting people in the Netherlands trade crypto without following the local rules. On top of that, DNB said the platform wasn’t meeting anti–money laundering standards. While Dutch users weren’t penalized, the bank did warn them to steer clear of KuCoin because of the legal risks tied to its unlicensed status. 

If more countries follow this suit, then users in restricted regions may potentially face frozen accounts, forced withdrawals, or even permanent bans. That’s a serious risk for users keeping large amounts of funds on the exchange.

Having that covered, let’s have a look at KuCoin’s security measures. 

KuCoin security toolkit

After the 2020 breach, KuCoin promised to improve their security. Here is how their robust security measures look now: 

Two-factor authentication (2FA)

You can protect your KuCoin account with Google Authenticator, which generates a 6-digit code that refreshes every 30 seconds. With it, each time you log in or try to withdraw funds, you’ll have to enter an additional code, leaving hackers zero chances to steal your passwords.

Trading password

You can also set a special 6-digit trading password. It’s required for placing orders, using the API, or making trades. So even if malware on your device or a data breach exposes your main login, this second PIN will block unauthorized trades.

Anti-phishing phrase

To prevent you from being another victim of an email scam, KuCoin lets you choose a custom phrase that appears in all official KuCoin emails. If you get an email without it, you’ll instantly know it’s fake. 

IP lock

You can also lock your account to specific IP addresses. This way, if someone tries to log in from an unfamiliar location, access will be automatically blocked.

Proof-of-reserves portal

KuCoin allows users to check that the exchange holds enough crypto to match what everyone has in their accounts. It uses a special system called a Merkle tree to show this data in a secure and transparent way. This means KuCoin can’t fake the numbers and you can see that your coins are backed by real funds for yourself.

Bug-bounty program and insurance

To catch potential issues before bad actors do, KuCoin runs a bug bounty program that promises to pay up to $1 million to white-hat hackers who find serious security flaws even in their advanced security systems.

You can make using this exchange platform even safer by following these tips. 

Tips for a safer crypto journey on KuCoin

Your personal habits can make a difference. Here are simple steps you can take to protect your crypto, avoid KuCoin scams, and trade with more confidence on KuCoin: 

Enable 2FA

Install Google Authenticator and keep SMS as backup. Codes change every half‑minute, blocking brute‑force break‑ins.

Update passwords and security questions

Change both passwords and security questions every three months and never reuse old ones. Even if one of your passwords or security questions hits the leaked list on the dark web, refreshed details will keep you safer.

Bookmark the KuCoin website

Phishing sites may copy company logos so that it may be difficult to tell the difference. A trusted bookmark and your enabled anti‑phishing phrase in KuCoin settings will prevent accidental logins on fake pages.

Keep trading capital small

Use KuCoin only for quick crypto trading. Move profits to hardware wallets or cold storage for long‑term money keeping. Even if the company fails to withstand the next potential breach, you won’t lose all your life savings. 

Double‑check withdrawal chains

When withdrawing crypto, always choose the right network because some are cheaper, and some are more expensive. If you pick the wrong chain, your crypto could get lost forever if the receiving wallet doesn’t support it. To avoid this, always confirm the chain and wallet compatibility before hitting send.

Use a VPN every time you log in

A VPN is like a secure tunnel for your Internet traffic. It hides your real IP address and encrypts your logins, trades, withdrawals. This is helpful for staying safe on public Wi‑Fi and even at home. A VPN adds a strong layer of privacy, doesn’t allow your Internet Service Provider (ISP) to track your actions, and allows you to access the platform without limits if your country blocks a particular exchange or crypto wallet.

However, free VPNs are usually too good to be true. Many track what you do, sell your data to third parties, or bombard you with ads. Some don’t even block leaks properly. When your money’s on the line, that’s a risk you can’t afford. That’s why you may consider using a reliable VPN provider like VeePN instead. 

VeePN shields your KuCoin assets and private data

Here is how VeePN can improve your safety and privacy when using KuCoin exchange: 

Military-grade encryption

VeePN protects every login, trade, or chart refresh with a powerful bank and military-level AES‑256 encryption standard. Even if someone’s snooping on hotel Wi‑Fi, all they’ll see is scrambled data they can’t read and take advantage of. 

Anonymous IP rotation

Every time you connect, VeePN gives you a new IP address. This hides your real location from KuCoin and helps block region-based tracking or attacks.

Shield from leaks

If your VPN connection glitches or drops, VeePN’s Kill Switch instantly blocks all traffic so that your real IP never slips through. This is especially important if you’re trading crypto in areas with strict or shifting crypto regulations.

Blocker of ads and malware

VeePN’s built-in NetGuard filters out shady pop-ups and fake “support” links pretending to be from KuCoin, which is one of the common ways scams spread.

Breach Alert monitoring

If your email tied to KuCoin ends up in a dark web leak, VeePN instantly alerts you about it. That gives you time to reset passwords before con artists can use them.

10-device coverage

One VeePN subscription protects up to 10 devices. This way, you can secure your KuCoin access whether you’re using it on your phone, laptop, or tablet. 

No Logs policy

VeePN’s strict No Logs policy means none of your activity like trades, logins, is ever tracked or stored. It aligns with KuCoin privacy policy​ as well. 

Try using VeePN without any risks, enjoying a 30-day money-back guarantee.

Written by Oliver Bennett Oliver Bennett is a dedicated cyber security content writer with a knack for breaking down intricate cyber topics into accessible and actionable insights.

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